Retail sales final on the rise

Survey findings from the Confederation of British Industry suggested that retail sales volumes in Britain rose at their fastest pace since 2007 during August indicating that the economic recovery may finally be starting to take hold.

The strong reading suggests that the surge in July that was reported in retail sales was not just a onetime event, and that the recovery reflected during the second quarter is still holding strong in the third quarter.

On Thursday the sales balance showed +35 for August and in July +33 which was well above the scores that economists predicted which were cast at about +20.  Clothing sales in particular were the highest they had even been since the survey started measuring sales in 1988.

UK economist for Societe Generale, Brian Hilliard, stated that the message from the high sales report is that July started out strong and continued to grow throughout August which reflects well for potential growth in the third quarter.

Retailers also expect to see growth continue to grow as they expect September to also reflect high growth sales of about +39.

The second reading of sales for August is due to be released today and will show a greater breakdown of each different sales market.

Government data for the month of July displayed a strong monthly sales rate that can be traced back to February when analysts expected to see the World Cup boost up sales overall across the marketplace.