UK retail sales surge as consumers defy ‘Brexit’

Bloomberg

UK retail sales unexpectedly increased for a third consecutive month in March, underlying the resilience of consumers in the face of Brexit uncertainty.
The volume of goods sold in stores and online jumped 1.1 percent from February, the Office for National Statistics (ONS) said. Sales excluding auto fuel increased 1.2 percent. Both measures had been expected to show a decline.
It means retailers made a positive contribution to the economy in the first quarter, with sales rising a respectable 1.6 percent from the final three months of 2018. That added 0.09 percentage point to growth, according to the ONS.
Record employment and rising real incomes are helping to underpin consumer spending, the largest part of the economy.
In contrast, businesses are cutting spending, fearing an economic slowdown could turn into a slump if the UK ends up leaving the EUwithout a deal to cushion the blow.
Retail sales last saw three straight gains in the summer of 2017. But the annual pace of growth was inflated by poor figures in March 2018, when Britain was hit by snow and freezing temperatures. Sales leaped 6.7 percent from a year earlier in March, the fastest pace since October 2016, and were up an annual 5 percent in the first quarter.
Statisticians said warmer weather last month encouraged spending, with food sales also recovering after a weak February. Clothing and household goods posted strong gains, only partly offset by weaker sales at department stores.
Non-store retailing, predominantly online operators, saw sales jump by 4.2 percent on the month and by a massive 23 percent on the year.