Amidst the shadows cast by sluggish retail sales in many key markets, the UK, whose Brexit vote triggered fresh economic turmoil in the global economy, has provided a slender ray of hope. Retail sales have risen by 1.4% in July as compared to sales in June, well ahead of the 0.2% increase that was expected by analysts, according to media reports.

 The news from the jewellery sector is even more encouraging – sales in the watches and jewellery segment were up 16.6% in July compared with the same month last year – the biggest jump in nearly two years, the reports say, quoting figures released by the Office for National Statistics (ONS).

Analysts however sounded a word of caution, it was reported.While the overall increase in retail sales could be attributed to more shoppers venturing out on account of the relatively good weather, they said, the jump in jewellery and watch sales was probably on account of the weaker pound which made it tempting for overseas buyers to spend more on luxury goods.

The trend revealed by the statistics was supported by empirical evidence from larger retailers including John Lewis, Next and Tesco, the media reports say, and even corraborated by the British Retail Consortium.

It is unlikely that the increase would be sustained for long however, according to experts quoted in the media, who said that the drop in the value of the pound will lead to a hike in exxpenditure on everyday purchases and a consequent decline in disposable income.