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Retail sales exceed analysts' estimates

Retail sales exceed analysts' estimates
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Retail sales in the UK increased by 1.2 per cent last month, new figures from the Office for National Statistics have revealed.

The rise - which is greater than analysts had predicted - comes after sales in May declined 0.9 per cent.

Spending on summer clothes was cited as one reason for the surge, while earlier summer sales at retailers also helping to increase the rate of transactions.

However, European economist at Daiwa Colin Ellis warned that positive conclusions should not necessarily be drawn from the new data, despite the fact that signs are encouraging.

"No one should take too much comfort from today's figures. Household retrenchment has a way to run yet, especially with unemployment rising," he remarked.

There was also positive news from the mortgage market today, with the British Bankers' Association revealing approved homeowner loans climbed to their highest level in over a year during June, with lending rising to £2.6 billion.ADNFCR-1681-ID-19279017-ADNFCR