UK retail sales for July came in at 0.5%, signalling the underlying health of the UK consumer after a questionable June reading raised fears of a slowdown in activity.
The data adds to a raft of encouraging UK economic data, which suggests that the UK economy is very much on the front foot.
UK GDP rose 0.6% in the second quarter as the economy continued its rebound from a shallow recession late last year. In addition, the latest round of inflation data hinted that the Bank of England would cut rates twice again this year.
The UK economy is far from booming, but it’s much better than the doomsayers would have you believe.
“Retail sales volumes were bang in line with expectations in July, bouncing back from a worse than expected June,” said Wealthclub’s Charlie Huggins.
“Department stores and sports equipment grew particularly strongly, boosted by summer discounts and the European football championship. Online spending was all strong across the board.
“Labour’s landslide election victory, the recent interest rate cut and falling mortgage costs have likely all played their part to support UK consumer spending.
“Overall, the UK economy appears to be chugging along, with little sign that consumers are significantly cutting back. With inflation moderating, paving the way for further interest rate cuts, retailers can look ahead to the rest of the year with a degree of optimism.”