UK retail sales up
Promising statistics are stacking up for UK retail sales in the month of June. The sales jumped four times as much as economists forecasted as signs of improvement in the economy and discounts which encouraged shoppers to buy more food and clothing. The figures climbed 1.2% from May with the help of promotions, discounts, signs of easing for the housing-market slump, and indication that the economy may have stopped contracting.
Confidence is making an attempt at recovery in the UK and is hoping to see a more marked strengthening in retail sales for the future. The spurred confidence comes from the fact that sales at food stores increased 0.7% while textile, clothing, and footwear shops saw sale increases for the first time in three months, by 4.7%.
However, the major cause for concern on consumer spending is the rising joblessness rate. Spending might buckle downs as the number of jobless people rose to 2.38 million in the quarter, and may reach 3.2 million by mid 2010.
Retail sales in the UK have allowed the sterling's exchange rate to position itself at EUR1.1616 and USD1.6537.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.