UK Retail Sales Increase Unexpectedly In August
September 20 2018 - 4:36AM
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UK retail sales grew unexpectedly in August, thanks to warm
weather and real wage growth, data from the Office for National
Statistics revealed Thursday.
Retail sales volume, including auto fuel, gained 0.3 percent
month-on-month in August, slower than the 0.9 percent increase seen
in July, but in contrast to the expected fall of 0.2 percent. This
was the second consecutive rise in sales volume.
Sales excluding auto fuel, also advanced 0.3 percent after
rising 1.1 percent a month ago, while economists had forecast a 0.2
percent fall.
Retail sales were largely boosted by a 4.5 percent rise in
household goods stores sales. Meanwhile, food store sales were down
0.6 percent and clothing and footwear sales slid 1.9 percent.
On a yearly basis, retail sales volume growth slowed to 3.3
percent from 3.8 percent in July. Nonetheless, the pace of increase
exceeded the expected 2.3 percent.
Similarly, excluding auto fuel, retail sales climbed 3.5 percent
after rising 4 percent in the previous month. Economists had
forecast a 2.4 percent rise.
Andrew Wishart, an economist at Capital Economics, said some
strengthening in consumer spending growth looks likely in the third
quarter.
While inflation unexpectedly ticked up in August, the economist
still expects it to ease to 2 percent by this time next year,
paving the way for a sustained recovery in consumer spending
growth.
In August, inflation rose to 2.7 percent from 2.5 percent in
July.
In the three months to August, sales volume increased 2 percent
from the previous three months with continued growth across all
sectors, the ONS said.
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