The United Kingdom’s retails sales were growing significantly in July. This will be the third consecutive month that the retail sales rose this year; this is a great indication that the economy is slightly growing as this is viewed as one of the important components of the economy. Great food sales were reported, although consumers remained cautious on income debacle.
Retail sales have greatly buoyed the economic growth in the past. This month, retail sales and even fuel sales were up despite the growing inflation they are having. Although other sectors failed to follow up on the food sales this quarter as they fall down by incremental figures.
Official Data and Figure
The Office for the National Statistic showed that retail sales were up by a good 0.3% on a month-on-month basis last July. On the other hand, the same office issued a change on the figures that were released last June; the revised retail sales growth was at the 0.3% which was at the 0.6% before the change. Despite the change that they recently made for June’s figure, it was still well above most analysts forecasts of 0.2%.
Retails sales were seen soaring to a total of 0.5% last July; this is excluding the growth figures from fuel sales. On the brighter side, the retail sales growth is taking a huge leap from last year’s figures, the results were ahead of a total of 1.5%.
One of the biggest stories about this month is the great influx in food sales; the total volume was increased by a good 1.5% last July. It is a great news that consumer spending continues to flourish and trample expectations even after the Brexit referendum. It has been a great result as most analysts predicted a total of 0.1% increase on this month.
Economic Growth through Retail Sales?
According to the Ole Black of the Office of National Statistics, “The underlying trend at the beginning of 2017 showed a relatively subdued picture in retail sales,” and “Strong food sales have been responsible for the [July] growth . . . as all other main sectors have shown a decrease.”
Consumer prices still manage to instill some caution inside the consumers, as a matter of fact, the retail sales managed to only grow by a mere 0.6% from the past 3 months. A silver lining that retailer is leaning on right now is the
Oliver Kolodseike of the Centre for Economics and Business Research noted that "Consumer spending has propelled the U.K. economy forward in recent years, but this trend will come to an end in 2017 as falling real wages will continue to squeeze household incomes and thereby depress retail sales volumes."
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