LONDON, Oct. 23 (Xinhua) -- Britain's retail sales recorded the fifth consecutive month of growth in September and is further above the pre-pandemic levels in February, the British Office for National Statistics (ONS) said Friday.
In September, retail sales volumes and values respectively increased by 1.5 percent and 1.4 percent compared to August, rising by 5.5 percent and 3.9 percent compared to the pre-pandemic performance in February, said the ONS.
On a quarterly basis, the retail sales volumes and values surged by 17.4 percent and 17.7 percent respectively in the three months to September (Q3) when compared with the previous quarter, said the ONS.
"The further rise in retail sales in September means that retail sales are now 5.5 percent above their pre-virus level," said Thomas Pugh, a British economist at Capital Economics, a London-based financial data analysis firm.
But Pugh added that total consumer spending will "probably start to stutter over the next few months as the furlough scheme ends and unemployment rises, despite the increased generosity of the Job Support Scheme."
British Chancellor of the Exchequer Rishi Sunak on Thursday announced big changes to the Job Support Scheme set to replace furlough in November in a bid to support businesses affected by the pandemic in England's "high" alert, or Tier Two, areas.
Under the revised scheme, employers will pay less and staff can work fewer hours before they qualify.
James Smith, a developed markets economist at financial services firm ING, said the British economy regained ground over the summer as business reopened, especially with the retail "almost back to pre-virus levels in June" and having "exceeded them in the months since".
"But this remarkable progress may be beginning to run out of steam," said Smith, adding that the renewed restrictions suggested "revenues will come under renewed pressure on the high street, as we edge towards the key Christmas trading period."
He thought all combined factors would add further pressure to the overall economic figures over the winter, saying "we expect October monthly GDP (gross domestic product) to record a contraction."
The new three-tier COVID-19 alert system set out by British Prime Minister Boris Johnson came into force last week across England as the country struggles to curb the spread of the coronavirus.
The alert system comprises three levels: "Medium", "High" and "Very High" with the level being decided according to local infection rates.
To bring economy and life back to normal, countries, such as Britain, China, Russia and the United States, are racing against time to develop coronavirus vaccines. Enditem
