UK retail sales rocket up in June - 3 times analysts expectations

inspector_monkfish

09:30 23Jul09 RTRS-INSTANT VIEW 1-UK retail sales shoot up in June

LONDON, July 23 - British retail sales rose at
three times the rate analysts expected in June as hot weather
and early summer discounting boosted sales of clothing,
official data showed on Thursday.

While the figures support the view that the British economy
is over the worst of the recession, they are unlikely to settle
the debate over whether the Bank of England will put more
stimulus into the economy.

*******************************************************

KEY FIGURES FOR UK RETAIL SALES

JUNE MAY F'CAST
% MM 1.2 -0.9 (-0.6 pvs) +0.4
% YY 2.9 -2.0 (-1.6 pvs) +2.2


KEY POINTS

- Biggest monthly rise in sales volumes since March

- Biggest annual rise in sales volumes since Dec

- Biggest monthly rise in textiles, clothing and footwear
since Jan

- First negative reading for sales deflator since Jan;
biggest fall since Dec

- The ONS said the monthly rise in retail sales volumes was
boosted by strong clothing sales and cited anecdotal evidence
that hot weather and promotions played a part.

- Textile, clothing and footwear prices were on average 6.7
percent lower than a year ago in June.

Graham_Devon

I wonder if people have got used to lower mortgage payments for those who have them, and are starting to splash the cash?

Just a thought.

inspector_monkfish

09:30 23Jul09 UK JUN RETAIL SALES +1.2% ON MO; +2.9% ON YR
09:30 23Jul09 UK JUN RETAIL SALES FORECAST +0.3% ON MO; +2.1% ON YR
09:30 23Jul09 RETAIL PRICE DEFLATOR -0.2% IN JUNE, FIRST FALL SINCE JANUARY
09:38 23Jul09 UK June Retail Sales +1.2%MM On Weather,Discounts


LONDON - U.K. retail sales rose more than expected in June, as a long period of sunny weather lifted purchases of clothing and footwear and sales at department stores, data from the Office for National Statistics showed Thursday.

The volume of retail sales rose 1.2% from the previous the month and was up 2.9% from a year earlier in June, the largest annual gain since December last year. May's sales were downwardly revised to show a 0.9% gain on the month and a 2.0% fall on the year.

The market was expecting retail sales to rise 0.3% on the month and 2.1%
year-on-year, according to a Dow Jones Newswires survey of economists last week.

The June rise was in line with other stronger-than-expected retail sales data reported by the British Retail Consortium reported earlier in July.

An ONS spokesman said sales at nonfood stores, which rose 1.6% on the month and 2.4% on the year, were boosted by a combination of warm weather and sales promotions.

The quarterly data rose 1.3%, up from an increase of 0.8% in the first three months of the year, suggesting that consumers are not being squeezed by the
recession as much as some economists had feared.

Second-quarter gross domestic product data are due Friday.
"There was some evidence of promotions, discounting and the sunny weather helping sales," the spokesman said.

Persistent aggressive discounting, particularly by food stores, pushed the
implied price deflator into negative territory - down 0.2% - in June for the
first time since January.

inspector_monkfish

Graham_Devon wrote: »

I wonder if people have got used to lower mortgage payments for those who have them, and are starting to splash the cash?

Just a thought.

not sure if there are enough of those kind of people around to significantly alter retail sales data is there?

Graham_Devon

inspector_monkfish wrote: »

not sure if there are enough of those kind of people around to significantly alter retail sales data is there?

Dunno! Was just wondering where people were getting the cash from.

inspector_monkfish

Graham_Devon wrote: »

Dunno! Was just wondering where people were getting the cash from.

ATM's usually

chucky

Graham_Devon wrote: »

I wonder if people have got used to lower mortgage payments for those who have them, and are starting to splash the cash?

Just a thought.

yes that must be it... the only people that go shopping are those with mortgages and they're the ones that have made it three times more than expected...

Graham_Devon

chucky wrote: »

yes that must be it... the only people that go shopping are those with mortgages and they're the ones that have made it three times more than expected...

Do me a favour and stop jumping to the far extreme every time I post.

I never said or implied any of that, I simply asked if it may be something to do with it.

chucky

Graham_Devon wrote: »

I never said or implied any of that, I simply asked if it may be something to do with it.

yes sorry you asked, i answered... if you don't like the facts don't read the post.
it's quite simple really.

i forgot to mention that there are two types of of these mortgage holders.
those on variable/trackers and those on fixed rates.
do you think those with with fixed rates would have more money to spend?

System

Most people have always had cash to spend they've just been too scared/worried to spend it.

I think people are just getting bored of being frugal.

inspector_monkfish