16/08/2012

Retail Sales On The Up

Hopes that the UKs recession may not be as deep as first thought have been raised following better-than-expected retail sales figures in July.

The Office for National Statistics said sales volumes in July rose by 0.3%, and were up 2.8% from last year.

It also revised June's monthly sales increase up to 0.8% from 0.1%.

Analysts now believe that initial estimates that the economy shrank by 0.7% in the April-to-June quarter are overly pessimistic.

Stronger rises in factory output and the construction sector, together with continued falls in unemployment, could mean national income as measured by gross domestic product (GDP) is not shrinking as quickly as first estimated.

(H/GK)


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