Thursday, 23 April 2015

UK retail sales fall, but upward consumer spending trend helps deficit reduction

Retail sales fell in March, but it would be wrong to get too worried about one month’s fall. The underlying trend in fact looks to have remained firm, and so far this year sales are showing reasonably strong growth. The UK is clearly seeing robust consumer-driven economic growth, and this has helped bring the deficit down below target. The danger is that the upturn looks unsustainable unless wage growth picks up soon.