Spending by shoppers has been largely robust in the wake of June’s referendum decision to leave the European Union, despite consumer sentiment initially suffering its sharpest monthly fall in a generation.
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United Kingdom shoppers appear to have largely shrugged off the Brexit vote as retail sales suffered only a slight decline in August after a bumper July, figures from the UK’s Office for National Statistics (ONS) suggest.
“Despite a small after July’s sharp increase, the underlying pattern in the retail sector remains one of solid growth”, ONS statistician Mel Richard said.
Compared to a year ago, retail sales of motor vehicles grew by 36.5 percent in July 2016.
When factoring in sales at petrol stations, retail sales increased 6.2%, from an upwardly revised 6.3% gain in July and compared with consensus for a 5.4% increase.
The Bank of England cut its benchmark interest rate last month to support spending as part of a package of measures to cushion the economy. Food sales rose on the month, as did sales at department stores.
“There was some variation between different sectors but overall the figures do not suggest any major fall in post-referendum consumer confidence”. Year-on-year growth came in at 6.2%, again beating expectations of 5.3%.
The total retail sales value in July 2016 was estimated at $3.7 billion, higher than the $3.6 billion in July 2015.
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Food sales remained strong over the month, while there was a decline in clothing and household goods sales with household goods recording the first annual decline since May 2014.
