Retail sales are up 2.1 per cent in the year to June, above the 1.6 per cent growth economists had been forecasting. The pound is performing better on the news.
The growth into quarter 2 (0.9%) will therefore contribute approximately 0.1 percentage points to gross domestic product (GDP) when estimated from the output approach.
In the month of June itself, sales grew by 0.2 per cent from 2.1 per cent the month before, in line with expectations.
Given the difference in wages and inflation highlighted this week we are loathe to cheer large increases in retail sales.— World First (@World_First) July 18, 2013
Outperformance will be met by disappointment later in the year as credit card bills bite and the savings ratio improves— World First (@World_First) July 18, 2013