This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-40959233
The article has changed 6 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| UK retail sales growth continues in July | 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. | 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. | 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%. | 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. |
| The figures show that the volume of food sales rose by 1.5% in July, having fallen by 1.1% in June. | |
| The ONS said all other sectors saw a fall in volume sales apart from household goods. | |
| Ole Black, ONS senior statistician, said that overall 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. |
| 'Extraordinarily resilient' | |
| 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. | 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. | "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. |
| Ben Brettell, senior economist at Hargreaves Lansdown, said the figures showed the UK consumer was "extraordinarily resilient". | |
| "Spending has defied expectations of a slowdown since the Brexit referendum, and currently seems to be holding up despite weak wage growth and above-target inflation," he added. | |
| "This could bode well for economic growth - the UK economy is heavily reliant on the consumer, and economists had expected falling real incomes to eventually translate into weak retail sales." |