Retail sales up, but still on a rollercoaster

Retail sales in Britain recovered slightly in June after May’s sharp slump but doing very little to change the concerns of many about the recovery. It also spotlighted the difficult struggle the government will have trying to erase such high deficit amounts.

Sales volumes were up 0.7pc in June said the Office for National Statistics which was just  a bit higher that estimates for analysts and recovering just about half of the drop from May.

Other figures indicate that government borrowing remained the same at £12bn as was expected. Thus far in the fiscal year the preferred measure of governments borrowing excluding financial interventions was very little changed from last year’s figures during the same period.

The government of Conservative and Liberal Democrats is just one year into their five your plan to try and eliminate the budget deficit in the country which was over 10% of the GDP before entering office May 2010.

The slow recovery has cast many doubts over the ability of the government to reach their goals. A great deal of disappointing news has created speculation over the economy which reversed direction the end of last year and may have contracted in the second quarter.

The squeeze in income for Britons is the worst in over 30 years and add to that high fuel prices, soaring food prices, slow wage increases, higher taxes and that all created less spending of non-essential items.

Nationwide the lender performed a survey that showed consumers were gloomier again in June. The confidence index reversed some of May’s gains dropping to 51 and is still well below its average of many years.