A strong relationship between retail sales growth and average UK maximum temperature has been described by latest financial figures.
Data, released by UK’s Office of National Statistics, revealed national services industries experience robust growth in the period of April-June 2018, driven by a surge in wholesale and retail trade.
“Within this, retail trade growth was particularly strong (2.1%), as a result of the warm weather seen in this quarter. This growth was also due partially to a bounce back from weaker growth in Quarter 1 (Jan to Mar) 2018,” the ONS report on GDP monthly estimate said.
Another sector of the UK economy — construction — has recovered, following three consecutive months of negative rolling three-month growth.
“Growth this quarter (Apr to June) was due partially to a bounce back from the negative growth seen in the previous periods, although there is some evidence that warm weather also contributed to an increase in construction output,” the report showed.
The head of national accounts at the ONS, Rob Kent-Smith, said that although the economy picked up a little in the second quarter, “manufacturing continued to fall back from its high point at the end of last year and underlying growth remained modest by historical standards.”
“The UK’s trade deficit noticeably worsened as exports of cars and planes declined sharply while imports rose,” Mr. Kent-Smith added.
The ONS report stressed that abstracting from the quarterly movements, the underlying trend in real GDP is one of slowing growth.
The presented statistical data comes two days after the national currency — pound sterling — plummeted to its lowest point in 12 months. Fueled by fears the UK government won’t achieve a Brexit agreement with the European Union, the pound reached US $1.2863 on Wednesday.
READ MORE: Sharp Fall for British Pound While May Prefers No Deal Over Bad Brexit Deal
Concerned with the pace of Brexit negotiations and lack of success, British businesses have recently signaled their patience is at breaking point and the uncertainty around the EU exit plan is overwhelming
READ MORE: UK Business Patience at Breaking Point as 24 Brexit Real-World Questions Set