Pound Slides After U.K. Retail Sales Data

Pound Slides After U.K. Retail Sales Data

But there was some good news for retailers: the amount spent in the sector rose one per cent in July compared with the year before, although fell 0.2 per cent compared with June.



UK Retail Sales released by the National Statistics registered a rise of +0.1% in July 2015, which was lower compared with the forecast of a +0.4% increase. Compared to the previous month, spending was down by 0.2%, with the quantity bought up by 0.1%.

Paul Hollingsworth, UK economist at Capital Economics, said the weaker than expected retail sales figures were “nothing to worry about”. “Real pay is rising strongly, unemployment is still low and the recent fall-back in the oil price and the forthcoming cut to gas prices should give households’ discretionary spending power another healthy boost”. Elsewhere, all types of retail stores except textiles, clothing and footwear reported falling prices.

This helped household goods sales rise 3.6% by volume between June and July, with electrical appliances, furniture and lighting items among those selling well.

Low inflation and faster wage growth, along with a booming housing market, are helping to support consumer spending.

The data also showed that average store prices fell by 3% year on year, largely due to an 11% fall in petrol prices. Online sales rose 13% compared with July 2014, but remained unchanged on June 2015.

Dan Wagner, chief executive and founder of Powa Technologies, said: “Fluctuating sales figures caused by unpredictable British weather should drive home the fact that many firms must adapt their approach if they want to flourish over the coming years”.

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