UK retail sales rise to two year high

Important Headlines

  • UK Retail Sales hit two-year high
  • Data beats analysts expectations
  • UK GDP predications for Q3 could be beaten

UK retail sales in August hit a two year high of 2.5% showing a stronger-than-expected growth. Offering a posivite note for the economy, sales volumes increased by 1% from July, surpassing the forecast of 0.4% growth.

This data print is used as a measure of the economy’s growth and is more than likely going to raise the estimates for GDP on Q3 for the UK.

This print comes a day after the Bank of England held interest rates at 5% mainly due to elevated core/services inflation.

The outlook is uncertain, despite the sales increase. Consumer confidence saw a steep decline in September, raising concerns about future spending. Major factors such as higher energy bills in the upcoming months could lead consumers to reduce discretionary spending, creating a potential drag on the retail growth.