UK Retail Sales Suddenly Soar, What's the Cause?

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 Following two consecutive months of falls, UK retail sales rebounded in July driven by increased online shopping.


According to a report issued by the Office for National Statistics (ONS), total retail sales, adjusted for inflation, rose 0.3% in July after recording a 0.2% decline in June.


On an annual basis, UK retail sales still fell by 3.4% last month from the 6.1% contraction recorded in June, while core retail sales fell 3.0% slightly better than expectations for a 3.1% decline and a previous fall of 6.2%.



The biggest contributor to the increase was driven by non-store retail sales, where total sales jumped 4.8% when Amazon held its annual Prime Day promotion last month, which in previous years has coincided with increases in UK retail sales.


However the long-term trend for sales is still down, the ONS said, and the Bank of England has warned that high inflation is likely to push Britain into recession later this year.


Meanwhile, sales of automotive fuel fell by 0.9% due to the heat wave being faced across the country which has led to reduced travel and consumption.


The pound's reaction showed it was unimpressed by the published figures, instead remaining traded lower against the strong US dollar.

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