UK DATA: Jul Retail Sales +0.3% m/m; +2.8% y/y; median -0.2% / +1.4%
-Jul Retail Sales ex fuel unch. m/m; 3.3% y/y; median -0.1% m/m;2.1% y/y
-Jun Retail Sales revised up sharply to 0.8% m/m from 0.1% m/m
Retail sales rose by more than expected in July and a sharp upward
revision to the June data suggests the Q2 downturn was not quite as bad
as first feared. Taking into consideration the back revisions these
figures are far stronger than expected, although with sales only making
up around 5% of overall GDP they won’t have a great impact on the Q2 GDP
figures. Nor is it likely to change the view that the Bank of England
could pump further money into the economy to boost flagging growth.
Headline retail sales rose 0.3% on the month in July and were up 2.8% on
the year, above the median for a monthly fall of 0.2% and increase of
1.4% on the year.