(Source: EconoTimes | 17 August 2016)
UK retail sales might have rebounded in July. The gloominess regarding the shock effect of the Brexit vote on the UK economy has been concentrated mostly on the July PMI surveys that create a composite PMI, which indicates towards a sharp decline in the GDP growth.
This is largely credible; however, the degree of the impact to the GDP might be overstated by the surveys, said Societe Generale in a research report. This is because they might rebound slightly in subsequent months of the third quarter and also because they exclude the vital retail sector, added Societe Generale.
Admittedly, the CBI Distributive Trades survey has reported quite weak sales in July; however, the more reliable survey for projecting sales, the BRC survey, reported a solid July. On that basis, sales are expected to have rebounded 0.8 percent month-on-month in July, recovering nearly the entire 0.9 percent month-on-month decline witnessed in June, noted Societe Generale.