LONDON: British retail sales surged past their pre-coronavirus level in July, the first full month that shops selling non-essential goods were open since the country went into lockdown in March.
The unexpectedly robust figures show the strength of consumer demand even as other parts of the economy — and much of the retail sector itself — struggle to recover from recent hefty losses.
Retail sales volumes rose by 3.6 percent from June — above all forecasts in a Reuters poll of economists — and were 1.4 percent higher than in July 2019, the Office for National Statistics said, representing a sharp recovery from double-digit falls in April and May.
Compared with February, before Britain was broadly affected by the pandemic, sales were 3 percent higher.
Separately, official figures showed public sector net borrowing, excluding banks, totalled $35.33 billion in July, just above economists’ average $39.011 billion.
Britain’s retail sector has enjoyed a much faster bounce back than almost all other parts of the economy hit by the coronavirus lockdown.
But behind the headline figures there has been contrasting experiences for different types of retailer.
Supermarkets and other food shops have enjoyed year-on-year sales growth as British people eat at home more. Online sales have boomed, and household goods stores have seen strong demand.
But other areas — especially high-street clothing retailers — have suffered, with clothing and footwear sales still 25 percent down on a year ago.
Companies such as Marks & Spencer, Boots, John Lewis, Dixons Carphone and WH Smith have announced plans for thousands of job cuts.
Economists fear the broad retail recovery could prove temporary.
“July’s retail sales likely will represent this year’s peak,” said Samuel Tombs of consultancy Pantheon Macroeconomics.
Restaurants and bars began to reopen in July — giving people more options for their spending — and unemployment is forecast to rise sharply once a government job support scheme stops at the end of October. ($1 = 0.7549 pounds)
UK retail sales surge past pre-COVID peak in July
https://arab.news/4t733
UK retail sales surge past pre-COVID peak in July
- Many fear the surge might be short lived as major retailers plan job cuts
- Supermarkets and other food shops have enjoyed year-on-year sales growth as British people eat at home more
Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn
RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.
On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.
The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.
According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.
The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.
The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.
The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.
Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.
The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.
Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.
Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.
The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.
Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.
