UK shoppers spent more than expected in August in confirmation of that UK consumer's good condition, with retail sales up by 0.3% in August versus expectations of a 0.2% contraction following a strong July performance as a result of hot weather and the World Cup.
The July reading was revised up from 0.7% to 0.9%. On a yearly basis, retail sales rose by 3.3% versus expectations of only 2.3%, and the July reading was revised up from 3.5% to 3.8%.
Sales volumes rose by 3.2% in the summer of 2017, with department store sales up by 1.3% and food store sales up by 3.2%. Retail sales account for about 20% of the UK economy.
The UK economy grew by 0.4% in the second quarter of 2018 and is expected to grow by 0.5% in the third quarter driven by consumer spending. Inflation figures were released yesterday and unexpectedly rose to a 6-month high of 2.7% in August.
