Economy

United Kingdom retail sales climb in August

United Kingdom retail sales climb in August”

The Office for National Statistics (ONS) revealed retail sales increased by 1% compared with July, and by 2.4% compared to August 2016.

Compared to the previous month, sales rose one per cent - also above predictions of a much smaller month-on-month growth of 0.2 per cent.

Some of Britain's biggest retailers felt the love following the ONS update, with shares in Marks & Spencer rising 2.26% to £3.48p and Next's shares rising 1.35% to £50.43p. "Either we dipped into our savings or we borrowed more last month".

The ONS said increased spending in non-food shopping trips such as department stores and DIY outlets was what drove the improved figures.

The price increase was particularly evident in the fuel sector, with the cost of petrol jumping by 5% over the past 12 months and the volume sold subsequently dropping by 1.1%.

Sterling jumped sharply on the news, gaining three-quarters of a cent against the dollar and half a cent against the euro.

Indeed, after previously warning the markets that a rate rise was on the way then failing to deliver, this latest run of economic data could be enough for the Bank to make its first move for a decade, when it next meets in November.

Prices in British shops continued to rise in August, the ONS said, reflecting the wider increase in overall inflation over the past year as the depreciation of the value of the pound seen since the vote.

The unexpected increase in August UK retail sales boosted the British pound, as it increases the likelihood the Bank of England (BOE) will raise interest rates before the end of 2017.

"Spending has defied expectations of a slowdown since the Brexit referendum, and now seems to be holding up despite weak wage growth and above-target inflation".

The Organisation for Economic Co-operation and Development said Wednesday the slowdown in the United Kingdom growth is expected to continue through 2018, while uncertainty remains over the outcome of negotiations around the Brexit decision.

"Today's retail sales figures indicate that consumers are showing an impressive resilience in the face of the ongoing real pay squeeze", said Ruth Gregory of Capital Economics.

"If this fails to materialise the economy could see a stronger second half to the year - though there are also growing concerns over the level of household debt, which is fuelling continued consumption in the absence of rising real wages".



Like this

loading...
loading...

Latest


21 September 2017
Real Madrid have Kane, Alexis on shopping list
He has made 247 Liga appearances for Real, netting 122 goals, and is the third-highest scorer now active in the Champions League behind Ronaldo and Lionel Messi.

21 September 2017
Father, daughter charged in attack on student at Ruskin High School
Court documents say Josiah Wright pulled the victim off of his chair in order to allow his daughter to attack him. The records say the father held people back so his daughter could continue hitting her ex-boyfriend.

21 September 2017
Apple Watch 3 LTE has issues with cellular connectivity, admits company
And you can now hear Siri responses on the watch speaker, something enabled by the new version's faster processor. A new model with its own cellular-network connection is Apple's next step toward an untethered world.

21 September 2017
NY joins US Climate Alliance fighting climate change
If the economies of the states in the alliance were combined, they'd represent the third largest economy in the world, Brown said. The move came weeks after President Trump announced he was pulling the USA out of the Paris Climate Accord .

21 September 2017
Antonio Conte: 'David Luiz fit for Atletico Madrid match'
But who could make Conte's starting XI? "We must be pleased tonight because we saw a lot of our young players in this game".

21 September 2017
Picture Talk: Priyanka Chopra & Malala Yousufzai Are In Awe Of Each Other
With her fetching global recognition after working in Baywatch and Quantico, she has only spread her goodwill. Present at the event was another bold girl, who has always spoken up for girls' education.

21 September 2017
This Insta-post suggests Geordie Shore's Scotty T got engaged
An insider exclusively told The Sun Online: "The big names in the cast are failing to agree terms such as fees for the series". Does this mean the Geordie Shore lads are growing up? New! has contacted Scotty T's agent for a comment .

21 September 2017
WTO says global trade rebounding, sees 2017 growth of 3
However, the multilateral trade body expects the pace to moderate next year and is estimated at 3.2%, within a range of 1.4-4.4%. Trump and his trade team have also blasted the WTO, including charges it has been too kind to China.

21 September 2017
Ambassador Nikki Haley says Trump doesn't want war with North Korea
North Korea also announced its withdrawal from NPT in 2003 and tested its nuclear devices since that time. However, several other experts said they were not anxious .

21 September 2017
Average Price Target Of 89.15 Issued For Elbit Systems Ltd. (NASDAQ:ESLT)
In the investing realm, using the moving average for technical equity analysis is still very popular among traders and investors. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.