# Has Brexit stopped Brits from buying? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-16 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: British Shoppers Boost Retail Sales Amidst Brexit Meta Description: British shoppers defied Brexit fears over the summer with a 1.4% spike in July sales, boosted by positive employment and GDP figures. URL: https://financedigest.com/has-brexit-stopped-brits-from-buyinghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/image-7-1736844509885-compressed.jpg) - **Retail sales surge at fastest rate for 6 months (CBI)** - **Retail sales spiked 1.4% in July (ONS)** - **Brits expecting inflation of 2.2% over next 12 months (Bank of England)** - **Positive employment and GDP figures are [giving Brits the confidence](https://www.financedigest.com/how-data-sharing-can-give-brands-confidence.html "How data sharing can give brands confidence") to keep buying (easyMarkets)** [British shoppers defied Brexit](https://www.financedigest.com/what-brexit-mean-for-british-buyers-in-spain.html "WHAT BREXIT MEAN FOR BRITISH BUYERS IN SPAIN") fears over the summer, as retail sales surged at the fastest rate in six months, according to a survey by the Confederation of British Industry (CBI). The [CBI’s survey showed that 35% of retailers reported higher year-over-year sales](https://www.financedigest.com/uk-retail-sales-growth-slides-as-omicron-hits-cbi.html "UK retail sales growth slides as Omicron hits – CBI") volumes in August, compared to 26% who said sales were down. The recent Office for National Statistics (ONS) report showed that [retail sales](https://www.financedigest.com/german-retail-sales-dip-more-than-forecast-in-august.html "German retail sales dip more than forecast in August") spiked 1.4% in July after a 0.9% drop in June. That was the [highest increase since](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") the beginning of the year. The pursuit of retail therapy may have contributed to slightly more upbeat inflation expectations over the short-term. UK [consumer inflation](https://www.financedigest.com/inflation-weighs-on-consumer-morale-in-euro-zones-big-three-economies.html "Inflation weighs on consumer morale in euro zone’s big three economies") expectations edged up in August but were unchanged over longer term horizons, according to the latest BOE/TNS Inflation Attitudes Survey. When asked about [expected inflation one year](https://www.financedigest.com/global-automotive-brake-system-market-is-expected-to-witness-a-rise-of-3-cagr-between-the-forecast-years-of-2020-2030.html "Global Automotive Brake System Market is expected to witness a rise of 3% CAGR between the forecast years of 2020-2030") from now, the median response from Britons was 2.2%, compared with 2% in May. [Inflation expectations 12 months](https://www.financedigest.com/spains-12-month-inflation-slows-down-again-in-december-to-5-8.html "Spain’s 12-month inflation slows down again in December to 5.8%") after that were also 2.2%, unchanged from the May survey. There was a noticeable [decline in five-year expectations](https://www.financedigest.com/global-hid-ballast-market-expected-to-decline-with-a-cagr-of-9-8-in-the-coming-decade.html "Global HID Ballast Market Expected to Decline with a CAGR of -9.8% in the Coming Decade") to 3% from 3.4% in May. However, both estimates are well above the [BOE’s target rate](https://www.financedigest.com/uk-economy-picks-up-in-august-underpinning-boe-rate-hike-bets.html "UK economy picks up in August, underpinning BoE rate hike bets") of 2%. So why are [British shoppers](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas") remaining so bold in the face of Brexit? **Nikolas Xenofontos, Director of Risk Management** at pioneering forex and CFD broker [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001gU0uubyzfLOAGX9lMzaaq8Ya86Y27cK2CE6uUu63weubmWc-5YScLUikw-amA7D0efooD-ICr8Kqfke5KNBLOnLIsBevE6U1rMR-WiQ0UJvs40jMAaoAkZOblYpkWC9sgHCZTDxsmS5wjAI5OOQzFS8rmSn-9ZA9uCkp1MB9ZY64a6s38N17Mw==&c=MU5vaemGLreVAtJPhpco-jsUq49VZsyBlaIWT2eQm4M8CR_nPaTqWA==&ch=KP1ZhK4gLKk_vx7_Q1ewI2TUH_HDarza8KAyNoN-b8q2VkUc4p0WsQ==), explains, There are a number of reasons that the looming Brexit process has failed to [stop Brits from shopping](https://www.financedigest.com/e-commerce-stop-reinventing-the-shopping-cart.html "E-commerce: Stop reinventing the shopping cart") over the summer. We’ve seen a string of upbeat [economic reports showing the UK has been absorbing the immediate shock of the Brexit vote and retail sales are the latest data](https://www.financedigest.com/european-bourses-steady-as-focus-remains-on-key-economic-data.html "European bourses steady as focus remains on key economic data") to reinforce this positive message. Data on employment and gross domestic product have surprised to the upside in recent months, painting a picture of a sound [economy with strong expectations](https://www.financedigest.com/global-fuel-injector-cleaner-market-emerging-economies-expected-to-influence-growth-until-2031.html "Global Fuel Injector Cleaner Market: Emerging Economies Expected to Influence Growth until 2031"). [Consumers are feeling confident and as such see no reason to curb their spending](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important"), regardless of Brexit. Rising fuel prices helped push Britain’s inflation rate higher in July, which may have also provided a boost to short-term inflation expectations. The [consumer price](https://www.financedigest.com/german-eu-harmonised-consumer-prices-up-8-8-y-y-in-august.html "German EU-harmonised consumer prices up 8.8% y/y in August") index (CPI) rose 0.6% in July, the ONS reported last month. The [retail price index](https://www.financedigest.com/dollar-index-jumps-after-u-s-retail-sales-show-surprise-rebound.html "Dollar index jumps after U.S. retail sales show surprise rebound") (RPI) measure of inflation strengthened to 1.9% from 1.6% in June. The recent flow of [positive economic reports has led some analysts to believe](https://www.financedigest.com/go-for-it-think-positive-believe-in-yourself-and-do-what-you-love-says-dawn-elliott-of-sew-confident-chorley.html "“Go for it, think positive, believe in yourself and do what you love” says Dawn Elliott of Sew Confident Chorley") that the threat of Brexit was overhyped, but the Bank of England is not so certain. In August it slashed [interest rates](https://www.financedigest.com/czech-interest-rates-already-at-high-level-central-bank-governor-says.html "Czech interest rates already at high level, central bank governor says") to a new record low of 0.25% and added £70 billion to its quantitative easing program in order to stabilize property prices and the overall economy. Clearly the bank is preparing for the worst and if their [latest forecast](https://www.financedigest.com/global-animal-pregnancy-test-kits-market-2021-swot-analysis-drivers-restraints-growing-opportunities-latest-trends-applications-and-forecast-to-2028.html "Global Animal Pregnancy Test Kits Market 2021 SWOT Analysis, Drivers, Restraints, Growing Opportunities, Latest Trends, Applications And Forecast To 2028") is any indication, the post-Brexit blues are yet to come. According to the CBI, the unexpected strength in retail sales over the summer stems from a weak British pound, which is making the UK a prime destination for tourists. However, the pound’s double-digit percentage [drop since the referendum is also pushing up the price](https://www.financedigest.com/oil-prices-set-for-first-weekly-drop-since-august-as-supply-concerns-ease.html "Oil prices set for first weekly drop since August as supply concerns ease") of imports, which will lead to higher inflation over the short-term. This partly [explains the recent uptick in consumer inflation expectations](https://www.financedigest.com/explainer-india-g20-presidency-2023-what-does-it-mean-and-what-can-we-expect.html "Explainer-India G20 presidency 2023: what does it mean and what can we expect"). Time will tell whether it leads to an erosion of household purchasing power. The UK has not yet formally withdrawn from the EU or even indicated its plans for doing so. [World leaders](https://www.financedigest.com/queen-elizabeths-death-reaction-from-world-leaders.html "Queen Elizabeth’s death: Reaction from world leaders") have made it perfectly clear that they will not even consider negotiating a new trade deal with Downing Street until the UK and Brussels forge a new trade partnership. That’s precisely the message Prime Minister Theresa May received earlier this month at the [G20 Summit](https://www.financedigest.com/for-host-indonesia-a-g20-summit-dogged-by-russia-ukraine-rancour.html "For host Indonesia, a G20 summit dogged by Russia-Ukraine rancour") in Hangzhou, China. As the political wrangling over Brexit ensues, it [remains to be seen whether British shoppers will continue to hit the high street](https://www.financedigest.com/high-streets-remain-an-important-factor-for-people-choosing-where-to-live-property-investors-on-alert.html "High streets remain an important factor for people choosing where to live – property investors on alert") with such a strong degree of optimism. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---