July 24, 2009
UK, United Kingdom, retail, increase
RETAIL sales in the United Kingdom rose 2.9 percent in June compared to a year earlier and mortgage lending climbed by 8 percent in the month as summer weather smiled on a struggling economy, official reports said yesterday.
The upbeat reports contrast with rising unemployment, which now stands at 7.6 percent and is expected to rise for some time.
Retail sales, which have remained fairly buoyant through the recession, were up 1.2 percent from May, when sales slid 0.9 percent from April, the Office for National Statistics said.
In the three months through June, retail sales climbed 1.3 percent compared to a year earlier, led by a 4.6 percent gain by department stores and other unspecialized retailers.
Sales of households goods fell 6.2 percent, continuing a protracted slump, the agency said.
"Admittedly, sales were lent a helping hand by the good weather," said Vicky Redwood, analyst at Capital Economics, who noted that clothing sales were up 4.7 percent from May.
"Nonetheless, the big picture is still that the high street has been holding up surprisingly well since the start of this year," she added.
The nation basked in above-average temperatures with less than normal rainfall in June. This month, cooler and wetter weather may put a damper on spending.
Inflation has mod