Morning Round Up: Morrisons sales strong, fuel prices spike, service sector expands in Oct

Morrisons sales strong in Q3

Struggling supermarket Morrisons revealed its fourth quarter of rising sales on Thursday, helped by strong demand for Halloween merchandise.

Sales rose 1.6 percent in the three months to 30th October, with prices down 1 percent. However, total group sales fell 1.2 percent to reflect the continuing impact of supermarket closures and the exit of M local.

Morrisons have made more effort to focus on key seasons in recent months, and were boosted by a 20 percent rise in sales of Halloween goods.

 

The latest results are further evidence that the supermarket chain’s turnaround plan may be beginning to have an effect. Morrisons’ (LON:MRW) shares are currently trading up 1.40 percent at 224.20 (0943GMT).

Petrol prices at highest level in over a year

The price of petrol and diesel shot up in October, taking it to its highest level since July 2015 as rising oil prices and a weaker pound come into effect.

This marks the highest monthly jump in three and a half years, with average petrol prices rising 4.4p to 116.7p per litre and average diesel prices up by 5.2p to 118.7p per litre.

However, the RAC have said prices may settle in the next few months. Fuel spokesman Simon Williams said:

“Opec, which represents some of the world’s biggest oil producers, recently agreed in principle a cut in production.

“But a final deal is still to be agreed at an Opec meeting at the end of this month and, with some analysts suggesting a deal might yet stall, this leaves open the prospect oil prices might stabilise or even fall before the end of the year.”

Service sector strong despite growing inflation

The UK service sector expanded in September, rising to its highest level since January, despite growing inflationary pressures.

The Markit/CIPS UK Services Purchasing Managers Index (PMI) figure rose to 54.5 in September, up from 52.6 the month before and well above the 52.4 expected by analysts.

However, it also showed a sharp jump in inflationary pressures faced by companies, which grew at its fastest rate since the survey started in 1996. Chris Williamson, chief economist at survey compiler IHS Markit, said it “marred” the “encouraging picture of the economy” in October.

03/11/2016
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