adminLONDON — British retail sales rose 0,2 percent last month as department stores slashed their prices to woo customers, the Office for National Statistics (ONS) said in a statement on Thursday. That followed a 2.1-percent jump in May on the back of supermarket promotional activity, while June’s figure beat market expectations for a smaller increase of 0.1 percent according to a survey by Dow Jones Newswires.
Retail sales grew by 2.2 percent in June compared with the figure for the same month of 2012, the ONS added. Analysts had forecast a smaller gain of 1.7 percent.
Economists said that rising retail sales — an important indicator of consumer confidence — pointed to strengthening economic growth.
“June’s second consecutive monthly expansion in retail sales volumes provided further evidence that a consumer-led recovery is gaining strength,” said analyst Martin Beck at research consultancy Capital Economics.
“However, there are a couple of notes of caution. Sales growth, in part, appears to have been supported by heavy discounting. And with real earnings continuing to fall and households eating into their savings, the sustainability of a consumer recovery remains in question.” — AFP
Online Reporter
derick.khumalo