UK sales rise amid uncertainty
By Robert Barr |
July 23, 2010, Friday
|
Print Edition
Print Edition
RETAIL sales in Britain rose by 2.5 percent annually in June while auto production jumped by 28.6 percent, according to reports yesterday, although experts warned that the outlook remains fragile.
While the data shows consumer demand is rising, government cuts could hurt it in the future, analysts say.
The Office for National Statistics said the value of retail sales was 0.1 percent higher than in May. The volume of sales was 1.3 percent higher than a year earlier, a gain of 0.7 percent from May.
Sales by mainly nonfood stores were 3.7 percent higher by value than a year go, while food stores registered a 1.7 percent gain, the agency said.
"That could be as good as it gets, though," said Vicky Redwood, senior UK economist at Capital Economics. "The fiscal squeeze is set to knock some 8 percent off household incomes over the next few years. And we see little scope for households to borrow more/save less to see them through."
Analysts at Barclays Capital cautioned that monthly retail sales figures are notoriously volatile, and they said the first half of the year has been disappointing.
Retail sales excluding gas were down 0.4 percent in the first half compared to the second half of 2009, according to analysts at Barclays Capital.
While the data shows consumer demand is rising, government cuts could hurt it in the future, analysts say.
The Office for National Statistics said the value of retail sales was 0.1 percent higher than in May. The volume of sales was 1.3 percent higher than a year earlier, a gain of 0.7 percent from May.
Sales by mainly nonfood stores were 3.7 percent higher by value than a year go, while food stores registered a 1.7 percent gain, the agency said.
"That could be as good as it gets, though," said Vicky Redwood, senior UK economist at Capital Economics. "The fiscal squeeze is set to knock some 8 percent off household incomes over the next few years. And we see little scope for households to borrow more/save less to see them through."
Analysts at Barclays Capital cautioned that monthly retail sales figures are notoriously volatile, and they said the first half of the year has been disappointing.
Retail sales excluding gas were down 0.4 percent in the first half compared to the second half of 2009, according to analysts at Barclays Capital.
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