Britain's hottest June on record helped lift retail sales, pushing consumers into department stores and supermarkets to spend on everything from food to furniture.
The volume of goods sold in stores and online rose 0.7% last month after a 0.1% gain in May, the Office for National Statistics said Friday. Economists had forecast a 0.2% month-on-month increase.
The figures suggest the UK economy is weathering strong headwinds on consumer spending from soaring prices and interest rates. The value of retail sales is rising faster than volumes, suggesting people are paying more to buy the same amount of goods.
The stronger data adds to the case for further interest-rate increases from the Bank of England, which is concerned that prices are still rising almost four times the pace of its 2% target.
While retail sales have held up better-than-expected in 2023, the outlook is darkening for consumers as many brace for a large jump in their monthly mortgage repayments.
The market research company GfK Ltd. said on Friday morning that consumer confidence slipped back for the first time in six months in July. The survey showed confidence draining on personal finances and the general economic situation amid fears of a tougher clampdown on inflation by the Bank of England.
Source : Bloomberg
