UK retail sales shrank in June 2016

UK retail sales

UK retail salesUK retail sales shrank in June 2016, due to weak demand for clothes. The decrease is 0.5% last month after the data was adjusted and the dynamics of newly created or closed stores were removed. According to Helen Dickinson, CEO of British Retail Consortium, it is too early to say whether consumers were influenced by the results of the referendum. It is assumed that the rainy weather diminished enthusiasm for shopping among the British citizens. Although the consequences of the vote for Brexit may affect consumer confidence, retailers hope that expected heat and vacations to return consumers in stores.

In May, consumer spending rose by 1.4%, while sales recorded a growth of 0.5%.

On year-on-year basis, the retail sales recorded 0.2% growth, but the increase has slowed at the end of the month.

We should recall that, immediately after the vote for Brexit was recorded the sharpest drop in consumer confidence in UK for last 20 years. Market research company GfK said that 60% of consumers expect the economic situation to worsen over the next 12 months.

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