If the latest retail sales data is to be believed, shoppers went mad in May. The numbers show a sharp rise in activity. In fact, year-over-year, the monthly increase was 8 percent.
These numbers appear to contradict the pessimistic message of the Bank of England's agent survey. The BoE agents reported that firms were experiencing declining turnover and rising costs.
I am not sure I believe these retail numbers, but if they are true, then the demise of UK growth is greatly exaggerated. With such strong retail growth, the MPC should be thinking of some sizable rate increases. Or perhaps the MPC are skeptical also.