Quantcast
Menu
Save, make, understand money

Household Bills

August retail sales continue to defy Brexit vote

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
15/09/2016

Retail sales in August are estimated to have increased by more than 6% compared with volumes last year, shrugging off post-Brexit concerns, official statistics reveal.

In the four-week period from 31 July to 27 August, the household goods sectors showed growth, with the main contribution coming from food stores.

While the quantity bought in the retail industry decreased by 0.2% compared with July – downward pressure came from non-food store sales – it is estimated to have increased by 6.2% compared with the same period in 2015.

The Office for National Statistics (ONS) said the increase in sales represents the 40th consecutive period of year-on-year growth.

But while the amount spent also decreased by 0.5%, year-on-year statistics shows growth of 4.1%, taking the total amount spent in the retail industry to £28.6bn in the four week reporting period.

The amount spent online increased by 18.5% compared with August 2015 and increased by 0.4% compared with July 2016.

The ONS figures reveal that average store prices, including petrol stations, fell by 1.9% in August 2016 compared with a year earlier. However the price of goods compared with July have actually increased by 0.2%, with the largest increase seen in textile, clothing and footwear stores (0.9%).

Ben Brettell, senior economist at Hargreaves Lansdown, said: “Retail sales held up well in August following a strong July – yet another piece of evidence which shows the economy has fared better than expected since June’s referendum. Furthermore July’s figure was revised upwards to 1.9%, marking the strongest July in 14 years. Sales fell just 0.2% between July and August, a much smaller drop than the expected 0.5%. Year-on-year growth came in at 6.2%, again beating expectations of 5.3%.

“The vote to leave the EU appears to have had little to no effect on consumers’ willingness to spend, and the underlying trend in UK retail sales remains one of robust growth.”