Daily Management Review

Retail Sales in the UK Showed an Increase


Retail sales in the UK in July rose by 0.1% compared with the previous month, according to the Office for National Statistics (ONS) of the country.

Analysts, surveyed by Bloomberg, had expected a more significant growth - by 0.4%.

Increase in retail sales in annual terms amounted to 4.2% against the expected 4.4% rise.

According to revised data, in June, retail sales in the UK fell 0.1% from the previous month and increased by 4.2% compared to June 2014. Previously, reduction of the first indicator by 0.2% and increase in the second by 4% has been announced.

Last month, retail sales excluding automotive fuel rose by 0.4% for the month and for the year increased by 4.3%. The dynamics of both indicators coincided with the consensus forecast.

Low price increases and accelerating wage growth along with the boom in the real estate market are supporting consumer spending, economists say. The Bank of England is expected to accelerate the pace of consumer price growth to the end of the year.

Sale of fuel in July fell by 2.6% compared to the previous month, food products - by 0.2%, clothing and footwear - by 1.5%. At the same time, sales of household goods jumped by 3.6% - the largest increase since October.

Retail sales deflator, which reflects the change in prices in British shops, last month decreased by 3% yoy, in line with the June figure.

source: bloomberg.com