LONDON (Reuters) – British retail sales edged up unexpectedly in July, helped by the strongest growth in online spending over a three year period, which suggests that consumers will continue to support the economy ahead of the Oct. 31 Brexit-term.
A FILE PHOTO of Shoppers at the Boxing Day sales on Oxford Street in central London, Britain, 26 December, 2018. REUTERS/Henry Nicholls
The monthly retail sales volumes grew by 0.2%, the Office for National Statistics said Thursday, compared with an average forecast for a 0.2 percent drop in a poll by Reuters, economists, and following a 0.9% increase in June.
In comparison to July 2018, with revenue rising by 3.3%, slowing from growth of 3.8% in the month of June. The Reuters survey had pointed to annual growth of 2.6%.
Consumers have largely taken the Brexit it in their stride, helped by a modest rate of inflation and wages are growing at their fastest rate in 11 years.
This has helped the world’s fifth-largest economy at a time when many companies are cutting back on investment because of increased uncertainty about Brexit.
The figures are in stark contrast to a British Retail Consortium survey showed that spending fell in the year to July, the fastest pace on record for the month.
In the US, said retail sales grew by 0.5% in the three months to July, the smallest increase this year, and, as a result of a decrease in sales volumes in May.
“While it’s still in decline over the quarter, there was an increase in the number of sales in department stores in July, for the first time this year,” OUR statistics Rhian Murphy said.
“Strong online sales growth for the month was as a result of a promotion.”
Online sales jumped 6.9% on the month, their biggest increase in volume terms in 2016. In the Amazon, held its annual “First Day” sales promotion last month, and is a key driver of revenue for the company.
However, household goods stores reported their biggest monthly drop in revenue in two years, down 5.4%, with anecdotal evidence that the hot weather had kept shoppers out of the furniture and lighting stores.
A stable rate of inflation, with the strongest rise in salaries since 2008, and some of the lowest rates of unemployment since the mid-1970s, and continued to boost household incomes, even though, after inflation, wages are still below their highs from before the financial crisis.
However, there are signs that consumers may turn more cautious in the Uk the political crisis in drag.
The amount of households ‘ savings in relation to their incomes is not far off record low levels.
The news from retailers was mixed, to let. Fashion chain and shrugged his shoulders in the united Kingdom, the retail gloom on Wednesday, and also reported a surprising rise in full-price sales.
But, a baby products retailer Mothercare, the guilt of an uncertain and volatile home market, fragile consumer confidence as reasons as to why it won’t report an increase in their annual income.
Reporting by Andy Bruce and David Milliken