Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


  • Retail sales surge at fastest rate for 6 months (CBI)
  • Retail sales spiked 1.4% in July (ONS)
  • Brits expecting inflation of 2.2% over next 12 months (Bank of England)
  • Positive employment and GDP figures are giving Brits the confidence to keep buying (easyMarkets)

British shoppers defied Brexit fears over the summer, as retail sales surged at the fastest rate in six months, according to a survey by the Confederation of British Industry (CBI). The CBI’s survey showed that 35% of retailers reported higher year-over-year sales volumes in August, compared to 26% who said sales were down.

The recent Office for National Statistics (ONS) report showed that retail sales spiked 1.4% in July after a 0.9% drop in June. That was the highest increase since the beginning of the year.

The pursuit of retail therapy may have contributed to slightly more upbeat inflation expectations over the short-term. UK consumer inflation expectations edged up in August but were unchanged over longer term horizons, according to the latest BOE/TNS Inflation Attitudes Survey. When asked about expected inflation one year from now, the median response from Britons was 2.2%, compared with 2% in May. Inflation expectations 12 months after that were also 2.2%, unchanged from the May survey.

There was a noticeable decline in five-year expectations to 3% from 3.4% in May. However, both estimates are well above the BOE’s target rate of 2%.

So why are British shoppers remaining so bold in the face of Brexit? Nikolas Xenofontos, Director of Risk Management at pioneering forex and CFD broker easyMarkets, explains,

There are a number of reasons that the looming Brexit process has failed to stop Brits from shopping over the summer. We’ve seen a string of upbeat economic reports showing the UK has been absorbing the immediate shock of the Brexit vote and retail sales are the latest data to reinforce this positive message. Data on employment and gross domestic product have surprised to the upside in recent months, painting a picture of a sound economy with strong expectations. Consumers are feeling confident and as such see no reason to curb their spending, regardless of Brexit.

Rising fuel prices helped push Britain’s inflation rate higher in July, which may have also provided a boost to short-term inflation expectations. The consumer price index (CPI) rose 0.6% in July, the ONS reported last month. The retail price index (RPI) measure of inflation strengthened to 1.9% from 1.6% in June.

The recent flow of positive economic reports has led some analysts to believe that the threat of Brexit was overhyped, but the Bank of England is not so certain. In August it slashed interest rates to a new record low of 0.25% and added £70 billion to its quantitative easing program in order to stabilize property prices and the overall economy. Clearly the bank is preparing for the worst and if their latest forecast is any indication, the post-Brexit blues are yet to come.

According to the CBI, the unexpected strength in retail sales over the summer stems from a weak British pound, which is making the UK a prime destination for tourists. However, the pound’s double-digit percentage drop since the referendum is also pushing up the price of imports, which will lead to higher inflation over the short-term. This partly explains the recent uptick in consumer inflation expectations. Time will tell whether it leads to an erosion of household purchasing power.

The UK has not yet formally withdrawn from the EU or even indicated its plans for doing so. World leaders have made it perfectly clear that they will not even consider negotiating a new trade deal with Downing Street until the UK and Brussels forge a new trade partnership. That’s precisely the message Prime Minister Theresa May received earlier this month at the G20 Summit in Hangzhou, China. As the political wrangling over Brexit ensues, it remains to be seen whether British shoppers will continue to hit the high street with such a strong degree of optimism.

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts