U.K. retail sales beat forecasts, shows little impact of Brexit vote on shoppers

UK’s retail trade report for the month of August published by the office for National Statistics (ONS) on Thursday showed that spending by shoppers has been largely robust in the wake of June's referendum decision to leave the European Union.

UK’s retail volumes fell -0.2 percent m/m in August, while the annualized retail spending rose 6.2 percent. Data beat estimates for a -0.4 percent dip on a monthly basis, while a +5.4 percent reading was expected on yearly basis. Retail sales data excluding volatile items such as fuel also dropped -0.3 percent m/m, although rose 53.9 percent y/y.

"Despite a small retrace after July's sharp increase, the underlying pattern in the retail sector remains one of solid growth," ONS statistician Mel Richard said. "Overall the figures do not suggest any major fall in post-referendum consumer confidence."

Food sales rose 0.7 percent in August, offsetting a 1.9 percent drop in non-food sales. Clothing and footwear fell 3.4 and household goods dropped 5.3 percent. Although food sales gained on the month in August, the large monthly fall in non-food sales was something the ONS said could not be explained by patterns in seasonal discounts.

Meanwhile, British businesses are saying it is too early to judge the medium-term impact of June's vote.