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Good weather and summer sales boosted June retail, says ONS

By Don-Alvin Adegeest


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King Charles Credits: Royal.uk

British consumer purchases experienced a notable 0.7 percent rise in June, following a modest 0.1 percent increase in May, according to the Office for National Statistics (ONS). Retail sales volumes saw positive month-over-month growth across all major sectors, except for automotive fuel, which saw a 0.3 percent decline.

The report highlighted sector-specific performance, with non-food stores witnessing a 1 percent increase in sales volumes and non-store retailing, primarily online retailers, as well as stalls and markets, growing by 0.2 percent.

The surge in purchases was attributed to summer sales, increased foot traffic at department stores and furniture retailers, favourable weather conditions, and promotional activities that bolstered sales at some supermarkets, reported PYMNTS.

Over the three months ending in June, retail sales volumes increased by 0.4 percent compared to the three months ending in March.

The report also highlighted the lingering impact of inflation in the UK, as total retail sales value was 17.9 percent higher than the pre-pandemic levels of February 2020, while the sales volume remained 0.2 percent lower.

The 0.7 percent growth in retail sales surpassed economists' expectations, outperforming the 0.2 percent forecast reported by Reuters.

Despite facing an inflation rate of 8 percent, the highest in the EU, the country's retail sales demonstrated resilience and growth.

The unexpected rise in May's retail sales, initially attributed to the holiday celebrating the coronation of King Charles III, saw a revision in the figures by the ONS, changing the growth rate from 0.3 to 0.1 percent.

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