Retail sector outperforms expectations as furnishings sellers report summer season enhance
T
he UK’s retail sector did higher than anticipated in June, new official knowledge reveals.
Department stores and furnishings sellers recorded a very good month, the Office for National Statistics (ONS) mentioned.
Retail gross sales rose 0.7% final month, the official statistics physique mentioned.
Experts had forecast an increase of 0.2%, in line with a mean equipped by Pantheon Macroeconomics.
Sales in supermarkets and different meals outlets, which had fallen as folks ordered extra takeaways throughout May’s further financial institution vacation, bounced again, the info confirmed.
Food retailer gross sales rose 0.7% in June in comparison with the autumn of 0.4% in May, the ONS mentioned.
Department shops mentioned they benefited from the climate, which drove extra folks into their outlets. Summer sales additionally impacted volumes, which have been up 1.9%.
The ONS additionally revised May’s determine. It initially estimated a 0.3% rise, a lot better than anticipated, however on Friday it revised this all the way down to 0.1%.
The figures measure the quantity purchased – quantity – relatively than the quantity spent – worth.
ONS chief economist Grant Fitzner mentioned: “Retail sales grew strongly, with food sales bouncing back from the effects of the extra bank holiday, partly helped by good weather, and department stores and furniture shops also having a strong month.
“However, these were partially offset by falls in fuel, garden centres and clothes shops.
“Growth still fell on an annual basis, but at its slowest rate since the beginning of the Ukraine war.”
The knowledge additionally confirmed the worth of what folks spent in retailers additionally grew 0.7% final month.
Overall, since February 2020, the final month earlier than the Covid pandemic hit the UK’s economic system, the amount of what folks have purchased dropped 0.2% whereas the quantity they spent has risen 17.9%.
This means buyers are having to pay significantly extra to get barely lower than they have been earlier than.
Aled Patchett, head of retail and shopper items at Lloyds Bank, mentioned: “A rise in sales is to some extent not surprising with record temperatures spurring consumers to spend on summer clothing and outdoor goods.
“A combination of continued hikes in interest rates and the high cost of living is making shoppers less willing to spend on discretionary goods.
“That said, a downturn in energy usage throughout the summer months could provide relief for households, freeing up some disposable income.”