UK’s underlying economic current continue to pose improvement

According to latest survey by conference board UK's economic recovery is gaining momentum. After evidence of growth in industrial sector, latest survey shows UK's retail crowd isn't lagging behind.

Retail sales volumes remain steady in August and expected to pick up momentum in September. Overall sales volume remained comfortably above average. Biggest rise in growth came from clothing sector. Only glitch that remains is the price that remains low due to lower inflation environment. Recruitment remains healthy in August and expected to pick up further in September. Expectations are strongest in 15 years.

Key highlights -

• According to 36% of retailers, sales volumes increased in the year to August, while 15% said they fell, giving a balance of +24%. Better than expectations for growth of +13%.
• Growth is expected to rise at an even faster pace in the year to September (+35%).
• 26% of retailers said sales volumes for the time of year increased, while 9% said they fell, giving a balance of +17%, well above expectations of -1%.
• Grocers' sales volumes rebounded (+16%, from 0% in July).
• Clothing stores (+61%) continued to grow strongly.
• Footwear & leather and furniture & carpets retailers saw sales volumes fall (-70% and -33% respectively).

Expectations ahead -

• Retailers reported rising optimism about their business situation over the next three months (+22%) and an improvement in investment intentions for the year ahead (+17%).
• 36% of firms said they had increased their hiring, while 20% said it had fallen, giving a balance of +16% (the highest since November 2013, +20%)
• Jobs are expected to increase at a slightly quicker pace in the year to September (+22%) (the highest since May 2000, +23%).

The Glitch -

• Average retail selling prices fell on a year ago (-7%), from +11% in the previous quarter, but are expected to increase slightly in September (+5%).

FTSE and Pound are both down today by 1% and 0.5% respectively.