UK unemployment fell in run-up to Brexit vote

United Kingdom sales data for last month shows that shoppers overcame the confusion stemming from the outcome of the UK’s Brexit vote to leave the European Union, the just released United Kingdom retail sales data largely outpaced analysts’ expectations by more than 1.5% month on month in July, as it bounced off a 0.9% fall made in the previous month.

Retail sales data will provide the first official steer on how consumer demand has been affected by the unexpected result of June 23’s referendum, after other measures painted a mixed picture.

The report from the Office for National Statistics (ONS) also showed that in the three months to June the headline unemployment rate remained at an 11-year low of 4.9%.

The Scottish government’s employability minister, Jamie Hepburn, said the latest statistics showed that 65,000 more people are being employed in Scotland now than at the pre-recession high.

“Clothing retailers and department stores had a particularly good month, buoyed by better weather and a weaker pound encouraging tourists to spend”.

A survey by card company Visa, published earlier this month, also said spending picked up in July.

The Bank of England more than halved its forecasts for household spending growth over the next two years after the vote to leave the EU.

This price rise is far faster than we saw earlier in the year, and it nearly seems to suggest that around the referendum, people were becoming more confident about what the outcome would mean for the property market.

Official figures showed retail sales surged by 1.4 per cent in July, exceeding City expectations of a meagre 0.1 per cent rise.

“Consumers haven’t been ruffled by the Leave vote”, said Ruth Gregory of Capital Economics.

Sales of watches and jewellery were up 16.6 per cent in July compared with the same month last year – the biggest jump in almost two years. Like-for-like sales in the United Kingdom were up 7.2 per cent but bad weather and industrial action was blamed for a 3.2 per cent fall in French stores. In June sales had fallen in 0.9% in the run-up to the referendum.

United Kingdom retail sales posted a strong beat on Thursday, adding to a positive picture for the country’s economy following the decision to leave the European Union.

Meanwhile regular pay growth, excluding bonuses, was 2.3% – a slight improvement on the previous month’s figures. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.