Brighter outlook for June as retail sales increase

UK retail sales experienced an unexpected growth of 1.2% for June, new figures have shown.

The latest findings from the Office for National Statistics (ONS) have surprised many, especially following the 0.9% drop in sales recorded for May. It is thought that the good weather of June was responsible for the increase, with more people leaving their homes to visit their local shopping centres.

Compared to June 2008, retail sales have increased a total of 2.9%. It is thought that early summer sales across the sector played an important part in the improved figures as well.

However, David Kern, Chief Economist at the British Chambers of Commerce (BCC), has warned that there is more work to be done yet:

“This is positive news that supports our assessment that the worst phase of the recession is over. However, it is too early to talk about a sustainable recovery. With unemployment set to continue rising, prospects for the economy are still fragile and uncertain. 

“Any modest sign of improvement must be nurtured at this stage. It is much too early to consider withdrawing the policy stimulus.”

23/07/09