More Signs Brexit Fears Were Overplayed? UK Retail Sales Marked Fastest Pace Of Growth In 19 Months

Prior to the Brexit vote last summer, British supporters of the "leave" campaign were cautioned that a vote to exit the European Union would result in economic hardships.

Nearly a full year has passed since the vote and there are growing signs these warnings were wrong.

According to a Bloomberg report, the latest encouraging economic data shows that U.K. retail sales grew at their fastest annual pace in the month of April. The Confederation of British Industry's monthly retail index rose from 9 in March to 38 in April. This marks the highest reading dating back to September of 2015.

"After a dismal quarter for the high street in Q1, the strength of April's CBI Distributive Trades Survey is welcome news and helps to allay fears that real consumer spending growth is slowing sharply in the face of higher inflation," PoundSterling Live quoted Ruth Gregory, UK Economist at Capital Economics as saying.

More Caution Ahead?

While April's results were strong and cast doubt on the negative impact from the Brexit vote, it's important to keep in mind that the CBI warned that higher UK inflation could impact household spending.

Inflation is a key concern in the UK as the British pound has lost 13 percent since the Brexit vote last year but has rebounded from its post-Brexit low of $1.1841 to trade at $1.2875 on Thursday.

See Also:

Bank Of England To British Banks: Prepare For The Worst

Brexit's Biggest Loser Won't Be Britain