UK Jewelry and Retail Sales Surge in July Despite Brexit Vote
August 22, 16(IDEX Online News) – Figures from the Office for National Statistics showed that jewelry and watch retailers recorded a 17% jump in sales in July.
The UK vote in June to leave the European Union led to fears that the economy would suffer severe damage with consumer spending and investment expected to drop sharply.
Overall, retail sales jumped close to 6% last month on July last year, and rose 1.4% on June.
The rise in sales, however, is unlikely to be due entirely to UK consumers. Analysts believe it is more likely a result of the good weather last month together with foreign tourists taking advantage of the weak pound to buy in Britain.
The British pound has touched its lowest-ever figures against the US dollar and the euro in the aftermath of Brexit.
And in the jewelry sector, major luxury jewelry brands have not revised their prices up following sterling's decline, making them especially attractive to tourists.
But when stocks run down and new items bought at higher prices, prices are seen as inevitably being driven higher.