United Kingdom – Households continue to spend

Retail sales were marginally down (-0.17%) in August after a strong improvement in July (+1.86%). Therefore the carry over growth for the third quarter at the end of August is 6% at annual rate.
The first graph shows that the trend that started at the beginning of 2014 is still strong and not broken
The second graph shows that with the strong sales figures in July and August we can expect a large households’ consumption contribution to GDP growth for the third quarter.
Brexit is still not there and consumers take advantage of that (see here why the Brexit has no effect yet on the UK economic situation)

uk-2016-august-retailsales
uk-2016-august-retail-cons-exp

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