UK retail sales on an upswing
UK retail sales increased for a second month in July as shoppers bought more furniture and electrical goods, a sign consumer spending is reviving as the recession eases.
By Bloomberg |
LONDON: UK retail sales increased for a second month in July as shoppers bought more furniture and electrical goods, a sign consumer spending is reviving as the recession eases. Sales rose 0.4% from June, when they climbed 1.3%, the Office for National Statistics said Thursday in London. The result matched the median prediction of 28 economists in a Bloomberg News survey. From a year earlier, sales rose 3.3%, the most in 14 months.
The Bank of England this month extended its program to buy bonds with newly created money by ��50 billion ($83 billion) to cement the economy���s escape from recession. Governor Mervyn King, who wanted an even bigger increase, said last week the plan will continue ���until we start to see some signs of money growth and nominal spending in the economy recovering.���
���It���s moderately encouraging,��� said Ross Walker, an economist at Royal Bank of Scotland Group in London. ���Unemployment is still rising, and there are still significant headwinds facing the consumer. Next year may be a real challenge.���
Sales at non-food stores rose 1.1% on the month, offsetting a 1 percent drop at food retailers, the statistics office said. Household goods store sales increased by 4.5%, the most in almost three years.
Regional agents for the central bank reported the highest gains in retail sales in a year last month, with values rising 0.4%, the bank said Wednesday.
The Bank of England this month extended its program to buy bonds with newly created money by ��50 billion ($83 billion) to cement the economy���s escape from recession. Governor Mervyn King, who wanted an even bigger increase, said last week the plan will continue ���until we start to see some signs of money growth and nominal spending in the economy recovering.���
���It���s moderately encouraging,��� said Ross Walker, an economist at Royal Bank of Scotland Group in London. ���Unemployment is still rising, and there are still significant headwinds facing the consumer. Next year may be a real challenge.���
Sales at non-food stores rose 1.1% on the month, offsetting a 1 percent drop at food retailers, the statistics office said. Household goods store sales increased by 4.5%, the most in almost three years.
Regional agents for the central bank reported the highest gains in retail sales in a year last month, with values rising 0.4%, the bank said Wednesday.
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