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UK retail sales growth continues in July | |
(35 minutes later) | |
UK retail sales increased in July as stronger spending on food offset a fall in the purchase of other goods, according to official figures. | |
The volume of sales grew by 0.3% compared with June, the Office for National Statistics (ONS) said. | |
However, the figure for June's retail sales growth was revised down from 0.6% to 0.3%. | |
The gap between wages and inflation is continuing to widen, putting pressure on household spending. | The gap between wages and inflation is continuing to widen, putting pressure on household spending. |
Ole Black, ONS senior statistician, said it was a "relatively subdued picture" in retail sales". | Ole Black, ONS senior statistician, said it was a "relatively subdued picture" in retail sales". |
"Strong food sales have been responsible for the growth of 0.3% in July compared with June, as all other main sectors have shown a decrease. Whilst the overall growth is the same as in June, trends in growth in different sectors are proving quite volatile," he said. | "Strong food sales have been responsible for the growth of 0.3% in July compared with June, as all other main sectors have shown a decrease. Whilst the overall growth is the same as in June, trends in growth in different sectors are proving quite volatile," he said. |
However, Ruth Gregory, UK economist at Capital Economics said the July figures were "fairly encouraging given the recent intensification of the squeeze on consumers' real incomes and suggest that talk of a sharp consumer slowdown has been overdone". | |
She said there had been few signs of a sharp slowdown in spending growth away from the high street. | |
"What's more, with annual retail sales values growth remaining at a still strong 4.1% in July, this suggests that consumers haven't been tightening their belts as a result of Brexit uncertainty," she said. |