Ashton Whiteley: British Consumer Spending Increases
U.K. shoppers spend more on essential items as inflation rises after Brexit vote causes devaluation of the pound.
SHANGHAI, October 12, 2017 (Newswire.com) - According to recent survey published by Shanghai, China-based Ashton Whiteley, although British consumers upped their spending last month at the most rapid pace so far this year, not including an Easter spending rush in April, most of the increase was an indication of elevated prices for clothing and food after the EU referendum.
According to the British Retail Consortium (BRC), retail sales increased by an annual 1.9 percent in September on a like-for-like basis, up from 1.6 percent in the previous month.
The growth follows other indications that shoppers in the United Kingdom are adjusting to the increased inflation which can be largely attributed to the decreased value of the pound after the country voted for Britain to exit the European Union in June of last year.
The Bank of England, which has indicated that it is ready to increase rates for the first time in a decade, is anticipating an increase in spending.
The BRC stated that, although growth in total sales in September decreased marginally to 2.3 percent from 2.4 percent in August, it was still more robust than in most months so far in 2017.
However, according to an Ashton Whiteley analyst, shoppers were not showing much confidence in their shopping choices.
BRC Chief Executive Helen Dickinson stated that spending is still largely centered on necessary purchases like clothes and food, while consumers are hesitant to pull the trigger on items like furniture and electrical goods.
According to Ashton Whiteley, U.K. retail outlets enjoyed their largest increase in sales in more than three years in September.
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Source: Ashton Whiteley