Retails sales in the United Kingdom increased during August 2015, partly due to sales of school uniforms and equipment, according to the Office for National statistics (ONS) seasonally adjusted Retail Sales, August 2015 report released on Thursday.
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Continuing a sustained period of year-on-year growth, the volume of retail sales in August 2015 is estimated to have increased by 3.7% compared with July 2015. A pick-up in wage growth this year, combined with inflation hovering around zero, has helped restore some of the spending power lost in the years after the financial crisis.
On a month-on-month basis, sales were up 0.1%, and rose by 3% in the three months to July compared with the same period past year , Statistics South Africa said.
“It’s…too early to say whether this is a soft patch or if the economy is facing a steeper slowdown”, Chris Williamson, chief economist at data compiler Markit said. A 0.5 percent decline in September would leave sales unchanged in the third quarter, the ONS said.
“Given this uncertainty, it seems likely that policymakers will want to hold off on any interest rate hikes until the picture becomes clearer”.
A rise in retail sales wards off some fears of a slower economy, after official data showed last week that both the industrial and construction sectors reported falls in output in July.
The amount spent in August increased by 0.2 percent compared to a year ago but was 0.3 percent down on the previous month.
The proportion of sales transacted online also continued to grow, with 12.2% of all retail spending taking place over the internet in August, compared to 11.5% in August 2014.
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“Looking ahead, with consumer confidence running very strongly and the latest labour market numbers showing real pay in July rising at the fastest rate since 2002, the fundamentals are there for underlying retail sales growth to accelerate”.
