"Feedback from retailers suggested that sales were increased as consumers sought to buy high powered vacuum cleaners before the EU energy saving regulation came into force at the end of August."
- Office for National Statistics
Retail sales in the United Kingdom advanced in line with the majority of forecasts by 0.4% in August. Excluding fuel, they were up by 0.2%. Among volatile products, car sales jumped 2.1%, while furniture deliveries jumped as well amid beginning of the new study year. However, annual growth disappointed markets, as it reached 3.9%, up from 2.5% in July, while economists expected an increase above 4%. In Scotland alone, however, retail industry registered a 0.3% decline in August, compared with the year earlier. An overall positive momentum was provided by sales of electrical equipment, namely vacuum cleaners, before restrictions on powerful appliances entered into force. Moreover, prices at major retailers dropped 1.2%, on average, while food costs decreased marginal 0.1%. In general, retail sales registered their 17th month of gains.
Additionally to statistical data on retail sales, analysts' attention was focused on Scottish independence referendum yesterday. Voters in Scotland were likely to vote against independence and stay as a part of the United Kingdom. Until the last days of campaign, opinion polls showed a result, which would be too close to call. The data for Friday's morning showed a "No" lead of around 55%. At the same time, U.K. Prime Minister David Cameron and his political opponents have already promised more devolution powers for Scotland to take place after the referendum.
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