Meagre growth in June disguises strongest quarterly growth in a decade…

24 July 2014

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  • Meagre growth in June disguises strongest quarterly growth in a decade…
  • …built upon increasingly solid foundations…
  • …and boosting hopes for another quarter of solid consumption growth in Q2

John Bulford, economic advisor to the EY ITEM Club, comments on today’s retail sales figures:

“June ended a run of volatile monthly growth rates in retail sales. However, retail sales expanded by 1.6% in Q2, which was the strongest quarterly pace of growth for over a decade. This reaffirms our belief that we will see GDP growth of around 0.9% in tomorrow’s preliminary estimate for Q2. 

“The strength of consumption is set against an increasingly robust backdrop. Rather than fuelling their spending habits by saving less, as we saw for much of 2013, households are benefitting from rising disposable incomes, with the strength of employment growth playing a vital role.”