UK July Retail Sales Pick-up; Retailers Upbeat About August

-UK CBI July Volume of Sales Reported +22 vs +12 June

By David Robinson

     LONDON (MNI) - Retail sales growth accelerated in July with retailers

optimistic that there would be similarly strong growth in August, a CBI survey

found.

     The CBI's July Distributive Trades Survey found that the reported volume of

sales balance for July rose to +22 from +12 in June, far exceeding the expected

balance of +3. The expected sales volume balance for August was +20, up from +3

in July.

     In the second quarter, the retail sector made the largest contribution to

soft GDP growth of 0.3% on the quarter and the CBI data show the sector made a

strong start to the third quarter.

     The three month moving average of reported sales was +12, down from +17 in

June. Orders placed on suppliers was unchanged, with a positive balance of 10,

while sales volumes for the time of year rose to +6 in July from -2 in June.

     "The warm summer has added a sizzle to our high streets as shoppers defied

expectations, with sales growth in clothing shops and grocers driving overall

performance," Anna Leach, CBI Head of Economic Intelligence, said.

     She noted, however, that the economic fundamentals were shakier, with real

incomes falling and that this was likely to slow consumption down the line.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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