Thursday, July 23, 2009
Retail sales jump
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Retail sales have held up much better in this recession than many expected, as a result of the boost to disposable income from lower energy prices and mortgage rate cuts, aggressive discounting and the much-maligned VAT cut. June was no exception, sales volume rising by 1.2% on the month and 2.9% on a year earlier. In the latest three months they were up by 0.7%.

Retailers won't necessarily be celebrating. The retail sales deflator was down by 0.2% year-on-year, showing a squeeze on prices. Household goods stores are having a torrid time. Even so, the overall numbers were quite strong. More details here.