- Capital Economics
Retail sales in the UK jumped much higher than expected in April, along with shoppers that put jitters over the outcome of Britain's referendum on membership to the European Union aside to go on a spending spree. Retail sales climbed by 4.3% in April on the year-on-year basis, according to the latest data from the Office for National Statistics. The data was way above the revised 3.0% recorded in the previous month and the 2.5% that was expected by economists.
The figures suggest that the UK economy is poised for mild economic growth in the second quarter, after a sluggish start to the year. The data came a day after the ONS released figures showing an uptick in Britain's employment level and a slightly higher average wage. The number of people in work rose by 44,000 to 31.6 million in the three months to March compared to the previous three-month period, while the jobless rate stayed at 5.1%. Among the factors that have recently weighed on British growth is uncertainty surrounding the UK's future in the EU, with the nation's referendum on the matter due June 23. Bank of England officials say that a vote to exit the union would slow the UK economy and see customers and businesses hold off on spending decisions. Those in favour of leaving the EU, however, say that Britain would ultimately benefit from the chance to negotiate its own trading agreements and regulations.
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