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Fall In UK Retail Sales

James Boston
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Fall In UK Retail Sales

There have just been some mixed Retail Sales figures released by Britain’s National Statistics office but in general these have come in on the soft side. The headline Retail Sales year on year number for July is now reading at a growth rate of 2.6%, this represents a fall from the revised June level of 3.4% growth and misses the market consensus for a reading more in the region of 3.0%. Month on month the retail sales number grew just 0.1% compared to a 0.2% growth rate in June, 0.4% was the hoped for reading here.

The Ex Fuel Retail Sales numbers are somewhat more stable. July’s growth rate is being reported as 3.4% down slightly from the prior month’s 3.8% reading and meeting market expectations. The only upward movement was in the Ex Fuel month on month figure which produced growth of 0.5% on the month following a contraction of -0.1% in June, this number even managed to beat the market consensus estimate for 0.4% growth.

There was some positive news for the UK economy released in the form of the July’s deficit measurement, the Public Sector Net Borrowing requirement for the month was -£1.09Bn, this is the only the second time in the past 12 months that the UK has registered a monthly surplus. This represents a sharp turn around from the £9.506Bn borrowed in the month of June, analysts had however anticipate this month’s surplus but predicted it to be closer to a figure of £2.0Bn. The annual budget deficit in the UK has trebled in terms of GDP since 2011, three years ago this deficit was 1.5% of Gross Domestic Product, today it is closer to 4.5%, in real terms the acceleration of borrowing is even larger to the steady growth in the GDP figure since Britain began it’s emergence from the economic crises.

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