Discounts and online help retail sales bounce back in July

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UK retail traffics increased by 0.7% in July, ahead of expectations.

The Office for National Statistics (ONS) considers also showed that retail sales rose by 3.5% in the year to July.

ONS statistician Rhian Murphy implied: «Many consumers stayed away from some High Avenue stores in July, but online sales were very strong, bolstered by several retailers launching promotions.

«Food sales remained vigorous as people continued to enjoy the World Cup and the sunshine.»

On the three-month measure for May to July, jumble sales rose 2.1%, the strongest three months since February 2015.

The exchanges growth comes despite continuing pressures on High Street amasses and weakened household spending power as pay growth struggles to outpace inflation.

Clothing sales recorded their burliest year-on-year growth since December, also helped by sales media hypes, the ONS added.

Total spending online continued to increase, to reach a new memorial proportion of all retailing at 18.2% in July 2018.

Meanwhile, online spending via activity be contingent store websites also reached a record proportion of their overall sales, at 18.2%.

Wage growth weak

Andrew Wishart, UK economist at Principal Economics, said that the robust retail sales for July implied «some recovery in consumer spending is in the pipeline».

He said: «Of course, retail in stocks only account for about a third of total household spending, so the convincingness of spending on the High Street could be offset by households reducing their payment elsewhere.»

Analysis: Jonty Bloom, BBC Business correspondent

While the secure weather may have distorted these figures by keeping people off the baking hot Prodigal Street and at home shopping on their computers instead, the remorseless ahead of time of online shopping is hard to deny.

It now accounts for a record 18.2% of all allotting in the UK, a rise on last year of more than 15%. That increase was helped in the last month by a splurge of promotions by online shopping purlieus that increased sales, including Amazon Prime Day.

But an interesting outlook of the figures is that this is not just about new burgeoning online mammoths snatching business away from the traditional High Street. Division stores are rapidly moving into this area, their reduced in price on the markets online have increased by 35% in the last year, so almost twice as on the double as the average.

That reflects a trend of even the largest department stores fashionable more like shop windows, with shoppers visiting them to see the run and choice available but then going home to order online.

«Admittedly, still-weak actual wage growth will weigh on consumer spending,» Mr Wishart added. «Nonetheless, the retail sales information provides reason to think that consumer spending growth could pale a slightly improved performance in the third quarter.»

Following the announcement, the work over was up 0.24% against the dollar at $1.2727.

Hamish Muress, currency analyst at OFX, denoted: «The reaction from the pound… has been muted, suggesting that the wider sentiment of the UK economy is still bleak.

«With the chances of a no-deal Brexit floor plan high, wage growth shrinking and inflation rising, the Bank of England may tumble to it difficult to follow through on any previous notions of further interest bawl out hikes in the future.

«As long as this outlook remains, the pound desire continue to be under sustained pressure.»

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