UK retail sales grow faster than expected in June
Following a decline of 0.4% in May, food shop sales volumes rebounded with a 0.7% increase in June.
The Office for National Statistics said on Friday (21 July) that retail sales had risen by 0.7% last month, a larger increase than the 0.2% forecast by economists polled by Reuters, following a rise of 0.1% in May.
Sales decreased by 1% from a year earlier, exceeding expectations of a 1.5% dip, while retail sales volumes rose by 0.4% in the three months to the end of June, compared with the previous quarter.
Inflation comes in under expectations at 7.9% but UK remains 'drastic outlier'
Non-food stores sales volumes rose by 1%, following a fall of 0.5% in May as department stores and furniture retailers reported summer sales and increased footfall helped boost volumes.
Following a decline of 0.4% in May, food shop sales volumes rebounded with a 0.7% increase in June, with some supermarkets reporting that favourable weather and promotions helped sales.
Non-store retailing sales volumes rose by 0.2% last month, following a rise of 2.4% in May, while automotive fuel stores sales volumes fell by 0.3% after a rise of 1.7% the previous month.
Bank of England's Ramsden reflects on QT and suggests when more may be needed
Neil Birrell, CIO at Premier Miton, said that while the UK retail sales numbers were «somewhat contrary» to the UK inflation figures of 7.9% earlier in the week, we should not «expect it all to be one way traffic».
«The data is bound to be mixed, it could simply have been driven by the warm weather leading to more spending,» he said.
«The path for interest rates will remain on the up until the Bank of England has clear evidence of inflationary pressures weakening; there is some, but not enough yet for them
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