A little retail therapy is good for the soul – according to London based British retailers anyway. It seems that shoppers have given the ‘Brexit Baddie’ some time-out on the naughty step and hit the high streets in full force. According to industry figures released on Thursday – retailers report August as having their strongest sales in six months.
The confederation of British Industry stated that its sales volume index rose to +9, the highest since February. The data comes in conjunction with other more recent data which showed how consumers had seemingly shrugged off the vote, while overseas buyers took advantage of the dwindling pound – my guess is the warm weather may have had something to do with it also.
So with this fall in the good old British pound, an 11% drop since the EU referendum, look to buy less on imported goods, as this slump is likely to push up the price over time. Households may soon be looking at their ‘non-essentials’ budget with a scrutinizing, even squinty eyed glare while sucking air in through the teeth – like a plumber quoting for that awkward blockage in your u-bend.
But just because we are seeing a rise in spending on the high street, does not mean that consumer spending is on the up across the ‘consumer’ board. Data is data, and we need to remember there’s a much BIGGER picture and LOTS more data to consider. Talking of BIG …those larger ticket items such as purchasing a new car, already show clear signs of slowing down. And according to a recent survey – mortgages approved by British banks had fallen in July to its lowest in a year.
What we are seeing so far through most of the recent data however is, that the dire predictions made after the Brexit decision by those supporting remaining in the EU, has had less of a negative impact on the economy in reality. So whether you agreed with the decision… or not, it is what it is folks.
So when will we see Britain trigger the exit process that would start the clock ticking on the two year formal negotiation period? Who knows? I’ll just hang on for the finger on the ‘TRIGGER’ if it’s pulled, and whether a retraction on the Brexit decision is made before I get too excited.
Maybe I should stockpile some Bitcoins?