Discounts drive retail sales boost

Department store discounts drove a further rise in retail sales volumes last month, boosting hopes for overall growth figures due out next week.

The 0.2% month-on-month increase builds on a 2.1% rise in May - the first run of back-to-back growth in a year - according to the Office for National Statistics.It translates to growth in the sector of 0.9% over the second quarter, a rise that will push up overall gross domestic product by 0.1%.

Discounts drive retail sales boost. Credit: Jonathan Brady/PA Wire

The increase should contribute to a widely expected second three-month period of GDP growth for the economy as hopes of a continued recovery rise. The figures are due to be published on 25th July.

The largest contribution to the figures came from department stores, which saw a 3% increase, their strongest rise since March last year. Statisticians said it was driven by discounting and clearance sales.