UK retail sales grow for 12th straight month
RETAIL sales bounced in February, with the quantity of purchases jumping by 3.7 per cent against the same month last year, marking the 12th month of continuous growth.
According to the Office for National Statistics (ONS), the UK economy’s recent upturn has prompted the longest unbroken run of monthly retail sales growth since the end of 2007. In the month from January this year alone, sales increased by 1.7 per cent in quantity and 1.3 per cent more was spent by consumers.
The statisticians also recorded the first month of retail goods deflation since the second half of 2009, with prices dropping by 0.2 per cent.
The fall was largely due to fuel prices dropping by 4.4 per cent over the same period.
With consumer confidence picking up in the UK as growth returns, the outlook for retailers appears more promising than in recent years. However, John Hawksworh, chief economist at PwC, warned that growth should not be take for granted. “Looking to 2015 and beyond, strong retail and consumer spending can only be sustained if real income growth picks up,” Hawksworth said.
But Samuel Tombs of Capital Economics was upbeat. “With real pay set to pick up imminently and employment intentions strengthening, the foundations of the recovery in consumer spending should be more solid soon,” Tombs said.