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UK retail sales returned to growth in June, significantly beating gloomy expectations and providing a small boost to the weakening economy.
Sales volume grew by 1 per cent in June compared to the previous month, in contrast with economists’ predictions provided by Reuters of a 0.3 per cent contraction. June’s expansion follows two months of contraction.
The data were strong enough to cheer the pound. It rose 0.4 per cent to $1.2480, heading away from some of its lowest levels of the year. The trough of $1.2380 intraday came this week on growing concern at the rising prospects of a no-deal Brexit.
“Retail as a whole saw a return to growth in the month of June, mainly due to growth in non-food stores with increased sales in the second hand goods, including charity shops and antiques” said Rhian Murphy, senior statistician at the Office for National Statistics.
In the three months to June, retail sales grew by 0.7 per cent compared to the previous three months, weakening from 1.6 per cent expansion in the three months to May, according to the ONS data.
The UK labour market remains supportive for growing consumer spending. In the three months to May, regular pay in the UK grew at the fastest pace for nearly 11 years, while the unemployment rate remained at its lowest level since 1974.
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