A rise in retail sales during September will help bring the UK out of recession, claims Capital Economics economist Samuel Tombs.
UK economist Tombs says a 0.6 per cent month-on-month rise in UK retail sales were boosted by temportarty factors.
He says: “Retail sales volumes rose by a healthy 0.6 per cent on the previous month.
“This left volumes 1 per cent higher in the third quarter than in Q2, suggesting that the sector will add about 0.2pp[percentage points] to overall quarterly GDP growth.
“Nonetheless, some of this growth seems to have reflected temporary factors, not least a recovery from the Olympics-related drop in spending in August.”
Tombs says an increase in clothing sales was probably fuelled by autumnal weather, while the release of the latest iPhone provided a small boost to sales of computer and telecomms equipment.