Disappointing retail sales and GDP data released

Date: 23rd October 2009

Retail sales stayed static during September 2009 and the recession in the real economy continued over the third quarter, government data have shown.

According to GDP figures released today (October 23rd), the economy contracted by 0.4 per cent over the three month period.

Analysts had expected growth of 0.2 per cent.

Meanwhile, retail sales data showing monthly sales growth of zero and an annual increase of 1.8 per cent suggested that the UK high street was still hurting from the effects of the credit crunch.

Duncan Higgins, senior analyst at Caxton FX, said: "That Britons are spending less on food and clothing is a sign that the country is struggling to break free of recession."

Commenting on the GDP figures, Liberal Democrat shadow chancellor, Vince Cable said: "For all the hopes of a quick recovery, these figures make it clear we are still in the longest and what could yet become the deepest recession on record.

"With the legacy of unemployment likely to remain for years after the end of the recession, we need radical measures to avoid repeating the mistakes of the 1990s which left millions on the scrap heap."