Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

Hot weather boosts UK retail sales

Latest news

    Camden Lock, LondonImage copyright Getty Images

    UK retail sales rose by more than expected in June, rebounding from May’s decline, according to the Office for National Statistics (ONS).

    The quantity of goods bought rose by 0.6% in June from May, which was stronger growth than economists had been expecting.

    The rise was driven by strong sales of household goods, clothing and shoes.

    That compensated for falling sales at supermarkets and other sellers of food and drinks.

    “A particularly warm June seems to have prompted strong sales in clothing, which has compensated for a decline in food and fuel sales this month,” ONS statistician Kate Davies said.

    Retail sales rose by 1.5% in the three months to the end of June, which wipes out the 1.4% slide in sales over the first three months of the year.

    Economists prefer to look at figures over three months, which smooth out volatile moves from month to month.

    “We shouldn’t get too carried away by these figures. After all, the retail sales figures are very volatile on a month-by-month basis. And the heatwave in June provided a boost to clothing sales that may not be sustained,” said Paul Hollingsworth, UK economist at Capital Economics.

    Image copyright Getty Images
    Image caption The UK had one of the warmest Junes on record this year

    Other economists argue the figures should have been even stronger.

    “Last month was the fifth warmest June since 1910, and food and clothing sales usually surge when the temperature is unusually high in the summer,” said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.

    “The increase in retail sales in June was relatively modest, given the temporary support to demand from the unusually warm weather.”

    Economists are keeping a close eye on spending by UK shoppers as it has been supporting the overall economy.

    But with inflation now running ahead of wage growth, there have been concerns of a slowdown in spending.

    “The outlook of falling real wages and tightening credit conditions suggest that retail sales will struggle to retain Q2’s vigour in the second half of this year,” Mr Tombs said.

    Next week, figures will be released on second quarter growth in the UK. Growth could “perk-up” from the first quarter figure of 0.2% according to Chris Williamson from IHS Markit.

    View the original article: http://www.bbc.co.uk/news/business-40666793

    However, Mr Tombs from Capital Economics doubts there will be much improvement, given other weak economic data.

    In the same category are

    Parents ‘shelling out for free nursery scheme’ Image copyright Getty Images Image caption Many nurseries now charge for meals and snacks Parents are subsidising a new flagship "free" nursery sc...
    North Korea crisis: South to continue talks with ‘clear eyes’ Media playback is unsupported on your device Media captionSouth Korean Foreign Minister Kang Kyung-wha: "We understand North Korea better than anybo...
    Taxpayers owe private firms £199bn for PFI deals Image copyright Barts Health NHS Trust Image caption A £1.1bn revamp of the Royal London Hospital was funded through PFI Taxpayers still owe priva...
    UK pledges extra £44m for Channel border security Image copyright Getty Images An extra £44.5m is to be spent beefing up Channel border security, the UK government is to say later.It will be spent o...
    ‘Do not travel’ warning as snow storm hits Image caption The snow has led to tricky driving conditions in recent days A fresh band of persistent heavy snow is set to sweep across parts of t...
    Facebook selfie leads to killer Image copyright Facebook Image caption Cheyenne Antoine (L) poses with victim Brittney Gargol A Canadian woman has been convicted in the death of ...

    Leave a comment

    Your email address will not be published. Required fields are marked *