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Retail sales in UK keep rising in July

UK retail sales grew last month due to more robust spending on food despite decrease in other areas of trade, as official data shows.

As per the Office for National Statistics (ONS), sales rose by 0.3% in comparison with the preceding month. It should be noted though that June sales figure was revised to 0.3%, instead of previous estimates of 0.6%.

Wages and inflation further move apart, which demands more household spending. The data demonstrates that food sales went up by 1.5% last month, having slumped 1.1% in June. Every trade sector’s sales volume decreased except for household goods, according to ONS.

As Ole Black, senior statistician at ONS, said, robust purchases of food resulted in 0.3% rise of sales volume in July compared to June, meanwhile the rest of trade sectors have fallen. Although growth in general remains at the level of June, the situation with growth across sectors seems unstable, he added.

Ruth Gregory of Capital Economics believes that July data was quite reassuring taking into account the shrinking of people’s real incomes lately and says that debates of a strong spending slowdown has been an exaggeration. She added that there had been no significant signals of decline in spending if only the high street.

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