The British economy is showing signs of recovery faster than previously expected.
After stores reopened in May and June, the pent up demand in consumers has led to surge in retail sales that have returned to pre-COVID levels.
According to data released by Office for National Statistics, retail sales in the country rose by 13.9 per cent in June compared to May, making it the second month of overall increase after sharp decline in the months of March and April.
Another survey by HIS Markit and Chartered Institute of Procurement and Supple suggested that the services and manufacturing sectors were also returning to growth in July as consumer spending increased.
Online spending, DIY and food sales fuelled the increase in spending in June (retail sales were only 0.6 per cent lower than sales in February) with shoppers continuing to buy more food than usual, while cafes, restaurants and pubs remained shut last month.
However, economists do not consider these to be a sign of all returning to normalcy. They predict consumer spending to falter later in the year as job losses begin to mount.
The British economy is slated for at least two quarters of negative growth or a deep recession after GDP fell 2.2 per cent in January and March.
According to the Guardian, April saw a much bigger decline in GDP with 20.3 per cent, while it rose only 1.8 per cent in May and June’s figures are not strong enough to balance the losses from March and April.