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Retail sales in June boosted by hot weather | Retail sales in June boosted by hot weather |
(32 minutes later) | |
Retail sales rebounded in June as the hot weather boosted fuel and supermarket sales, according to official data. | |
Sales volumes were up by 0.9% in the month, the Office for National Statistics (ONS) said. | |
People bought more drinks at supermarkets and summer clothes, while fuel sales were up as consumers "ventured out and about in the sunshine", the ONS said. | |
The rise comes after sales fell by 2.8% in May, which was more than the ONS had previously estimated. | |
After May's drop, a rebound in June had been expected, but the increase was lower than many economists had forecast. | |
Ruth Gregory, deputy chief UK economist at Capital Economics, called June's sales increase "disappointingly small". | Ruth Gregory, deputy chief UK economist at Capital Economics, called June's sales increase "disappointingly small". |
The monthly retail sales numbers have been up and down lately, reflecting weather patterns and a late Easter. | The monthly retail sales numbers have been up and down lately, reflecting weather patterns and a late Easter. |
But overall, the rise in retail spending has lost momentum, with sales up just 0.2% between April and June compared with the previous three months. | But overall, the rise in retail spending has lost momentum, with sales up just 0.2% between April and June compared with the previous three months. |
That ties in with a separate survey from researchers Gfk which suggests that consumer confidence is weaker than a year ago, and supports economists' views that next month's figures on economic growth will show it was lacklustre in the second quarter of this year. | That ties in with a separate survey from researchers Gfk which suggests that consumer confidence is weaker than a year ago, and supports economists' views that next month's figures on economic growth will show it was lacklustre in the second quarter of this year. |
Sales in food stores were up 0.7% in June, the ONS said, while fuel sales rose 2.8%. | Sales in food stores were up 0.7% in June, the ONS said, while fuel sales rose 2.8%. |
"The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases," said ONS senior statistician Hannah Finselbach. | "The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases," said ONS senior statistician Hannah Finselbach. |
"It was also a good month for fuel sales as consumers ventured out and about in the sunshine." | "It was also a good month for fuel sales as consumers ventured out and about in the sunshine." |
The Met Office said that England had its warmest June on record, and the second warmest for the UK as a whole, following two heatwaves. | The Met Office said that England had its warmest June on record, and the second warmest for the UK as a whole, following two heatwaves. |
Sales at non-food stores rose, the ONS said, with clothing benefiting from promotions and the hot weather. This was partially offset by a fall in sales of household goods such as furniture. | |
Jacqueline Windsor, head of retail at PwC UK, said the rebound in sales at supermarkets and fashion retailers was down to shoppers entertaining at home and refreshing their wardrobes. | |
"However, England's warmest June on record also discouraged shoppers from visiting high streets, with footfall declining and online retail sales penetration increasing," she said. | |
The figures come after a string of economic setbacks for the government. | |
This week figures revealed government borrowing was higher than expected last month as increased spending on public services and debt interest payments outstripped revenue from taxation. | |
This was after data showed the economy shrank unexpectedly and inflation rose to 3.6%. |