UK sunshine warmed up retail sales in June, ONS says
Retail sales volumes rose by a month-on-month 0.9%, a partial rebound from May's 2.8% plunge which was the biggest fall since December 2023.
However, the increase was smaller than the median forecast of 1.2% in a Reuters poll of economists.
Many British households are feeling the squeeze again from an inflation rate that rose to 3.6% in June with food prices rising faster.
A survey published earlier on Friday showed consumer confidence dipped this month ahead of possible tax increases later this year and households added to their savings.
In the three months to June, sales volumes rose by 0.2%, the weakest such increase since the three months to February, the Office for National Statistics said.
ONS senior statistician Hannah Finselbach said the warm weather last month helped supermarket retailers who reported an increase in drink purchases and fuel sales rose.
"Looking at broader trends, retail sales are up slightly across the latest quarter but are down when compared with pre-pandemic levels," Finselbach said.
British retailers have highlighted the impact of the country's weather on their sales recently.
Supermarket group Sainsbury's (SBRY.L), opens new tab reported better-than-expected quarterly trading with food and clothing boosted by warm temperatures. But fast food retailer Greggs (GRG.L), opens new tab warned on profit complaining that June's heatwave hit overall footfall.
Sterling was little changed against the U.S. dollar immediately after the data was published.
Britain's economy has stumbled after a strong start to 2025 with overall output contracting in April and May.
The Bank of England is expected to cut interest rates by a quarter of a percentage point on August 7 as it responds to a jobs market slowdown. However, inflation pressures have thwarted bets on faster cuts to borrowing costs in the coming months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
42 minutes ago
- Reuters
Canada to help lumber industry cope with US tariffs, says Carney
OTTAWA, Aug 5 (Reuters) - Canada will provide up to C$1.2 billion to help softwood lumber producers deal with U.S. countervailing and anti-dumping duties, Prime Minister Mark Carney said on Tuesday. Carney, speaking to reporters in the Pacific province of British Columbia, said Ottawa would make up to C$700 million available in loan guarantees and also provide C$500 million to help speed product development and market diversification. ((Reporting by David Ljunggren, editing by Promit Mukherjee)) (Reuters Ottawa editorial; opens new tab)) Keywords: USA TARIFFS/TRUMP CANADA
Reuters
2 hours ago
- Reuters
US dollar rises as market eyes Fed chair successor
NEW YORK/MILAN, Aug 5 (Reuters) - The U.S. dollar rose against most currencies on Tuesday, but remained within striking distance of Friday's lows, with the market still in consolidation mode. The market is focused on President Donald Trump's nominations to the Federal Reserve Board after the resignation of Fed Governor Adriana Kugler last Friday as well as his choice for commissioner of Bureau of Labor Statistics. Trump on Tuesday said he would announce decisions soon on a short-term replacement for Kugler, including his pick for the next Fed chair. He ruled out U.S. Treasury Secretary Scott Bessent as a contender to replace current chief Jerome Powell whose term ends in May 2026. Bessent wanted to remain in his current job. The White House is looking at four candidates to replace Powell. "These last two days we have been consolidating. And the data this week doesn't really matter so much. With the Q2 GDP out, most of the data is old news," said Marc Chandler, chief market strategist, at Bannockburn Forex. "What we're waiting for is the next day or two, people are expecting Trump to announce who's going to replace the retiring Fed governor, and who's going to be at the BLS." Trump said on Sunday he a new BLS commissioner within three or four days. Analysts said Kugler's exit and the firing of the BLS's commissioner could harden views that the Federal Open Market Committee's independence is protected, recalling that the new appointee will be just one vote on the FOMC. Tuesday's data, meanwhile, had little impact on the currency market. U.S. services sector activity unexpectedly showed a flat outcome in July, with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years. The Institute for Supply Management said on Tuesday its non-manufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. Economists polled by Reuters had forecast the services PMI would rise to 51.5. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The euro was last down 0.2% against the dollar at $1.1553. That pushed the dollar index , which measures the U.S. currency against six counterparts with the euro as the biggest component, up 0.30% at 98.88, after touching a one-week low earlier in the session at 98.609. Weak U.S. jobs data last Friday had boosted bets on Federal Reserve rate cuts and triggered a sharp dollar selloff. U.S. rate futures are now pricing in an 88% chance of the Fed cutting rates in its next meeting in September, compared with 35% a week earlier, according to the CME's FedWatch. They also indicate 60 basis points (bps) of cuts by end-December and 130 bps in rate declines by October 2026, 30 bps more than the levels seen on Friday before the U.S. jobs data. Goldman Sachs expects the Fed to deliver three consecutive 25 basis-point rate cuts starting in September, with a 50 basis-point move possible if the next jobs report shows a further rise in unemployment. The dollar rose 0.2% to 147.42 yen , after minutes of a June policy meeting showed a few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade frictions de-escalate. Sterling was flat against the dollar, as traders expect the Bank of England to maintain its rate guidance at this week's policy meeting. It was last little changed at $1.3292 . The focus, however, remains on tariff uncertainties, after the latest duties imposed on imports from dozens of countries last week by Trump increased worries about the health of the global economy. The 15% tariff that European Union goods face when entering the U.S. is all-inclusive, a senior EU official said on Tuesday. The Swiss franc , on the other hand, was flat at 0.8072 per dollar, after dropping 0.5% in the previous session. But it was still above the levels seen before Friday's data at around 0.8128. Switzerland is looking to make a "more attractive offer" in trade talks with Washington, to avert a 39% U.S. import tariff on Swiss goods that threatens its export-driven economy.
The Herald Scotland
2 hours ago
- The Herald Scotland
Greggs and KFC team up to launch sausage roll drenched in gravy
The brands said the alliance followed Britons consuming 15,000 litres of KFC gravy and more than one million Greggs sausage rolls every day over the past year. They are taking the new combination on a three-day tour from Thursday, handing it out for free in London on August 7, followed by Manchester on August 8 and Newcastle on August 9. A sharing bucket including six Greggs sausage rolls and a large tub of KFC gravy will be available for £10 on Friday August 15 and Saturday August 16 through Uber Eats in London, Manchester, Newcastle and Birmingham. KFC brand manager Phoebe Syms said: 'At KFC, we bleed gravy. We go to obsessive lengths for our liquid gold, and so do our fans. 'In fact, it was them who inspired this once-in-a-lifetime event, calling for us to partner with Greggs and unite our iconic gravy with their iconic sausage rolls. 'Now we're joining forces for just a few days to give the people a taste of what they really want … it's time for gravy to meet pastry. You're welcome.' Fiona Mills, brand communications lead at Greggs, said: 'With 96 layers of light puff pastry, and perfectly baked to give that satisfying golden crisp and flaky goodness, we've always known our sausage rolls are a true British icon. And why not pair one icon with another? 'We can't wait to see what Greggs and KFC fans make of our latest partnership. We're sure fans of both brands will enjoy devouring their Greggs x KFC sharing bucket.' The tour will stop at London's Southbank Centre on Thursday, followed by Manchester's Cathedral Gardens on Friday and then Newcastle's Times Square, all between 12pm and 5pm, with supplies available on a first come, first served basis. Last week, Greggs revealed a slump in profits as it was knocked by hot weather and caution among shoppers over their finances. The Newcastle-based business revealed that pre-tax profits fell by 14.3% to £63.5 million for the half-year to June 28, compared with a year earlier. It said the first half of 2025 was impacted by 'challenging market footfall, more weather disruption than in 2024' and increased costs.
