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UK Retail Sales Experience a Surge In Recent Times

November 22, 2016
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UK Retail Sales Experience a Surge In Recent Times

In the past few days, the Pound US dollar exchange rate continued to move downhill after the announcement of the election results. However, the retail sales in the UK seemed to pick up its pace resulting in the strengthening of the Sterling. The Pound increased by 0.4% against Dollar which is a welcome change.

The retail sales have increased, thanks to the Halloween spending increase. The cold weather has also encouraged the UK citizens to spend more.  Ed Balls, the former Shadow Chancellor has expressed his interest in bringing about a reform in the independence of Bank of England. However, the central bank won’t comply completely with the will of the government.

The increase in retail sales has increased the hope for the recovery of the UK economy which suffered a major blow after the Brexit vote. In contrast to the expectations earlier, the UK economy may end on a high note. The retail sales grew at a commendable speed and reached its high in 14 years. The retail sales went up by 7.4%. However, economists warn that sustaining the growth can be incredibly difficult. Clothing sales and Halloween sales have benefited the supermarkets, but the sales can go down after the frenzy.

Interestingly, the home goods fared well in the past month as spending increased by 24% in a year. The people may be interested in domestic improvements as the Pound was deteriorating. This is a great start for the final quarter of this year.