UK Consumer Spending Beats Expectations in August

• UK Consumer Spending Beats Expectations in August

UK consumers continued to buy despite sluggish wage growth, the Office for National Statistics said on Thursday.

Retail sales rose 0.3 percent in August to beat 0.2 percent decline estimated by economists.

Sales were led by household goods such as electrical items and furniture, while sales of food and clothing declined in August after a strong gain in July.

The report showed economic momentum picked up in the third quarter, despite slowing growth in both construction and manufacturing sectors and a rise in consumer prices in August.

Growth between May and July was the strongest in almost a year, meaning growth in the third quarter is likely to exceed expectations.

However, consumer prices rose in August to 2.7 percent after the Bank of England raised interest rates to curb rising inflation in the same month. Suggesting that central bank may be forced to raise interest rates earlier than anticipated.

The pound gained against the US dollar to 1.3244.