The office for National Statistics reported that sales volumes rose 1.3 per cent on the year, slightly higher than the expected 1.0 per cent. The Sterling gained a third of a cent against the dollar and the FTSE 100 share index gained back losses. The consumer retail boost came mainly from electrical goods as consumers purchased new televisions to view the 2010 World Cup in South Africa.
The data suggests to economists the second quarter GDP will show growth as well. The first estimate of GDP will be released on Friday.
Philip Shaw, UK economist at Investec stated “The question is not so much how sales fared in June but the outlook over the second half of the year and there are big question marks over the robustness of household spending.”
The World Cup helped push household goods which led the rise jumping 1.6 per cent on the month and 6.1 per cent for the year.
Discounted deals helped draw in shoppers and the retail sales deflator eased to half of May’s level, the lowest in over 6 months to 1.3 per cent. This is good news as the retail sales deflator measures price inflation.