British retail sales drop in June: official data

Sales by volume dipped 0.2 per cent last month compared with May, the Office for National Statistics (ONS) said in a statement issued on Thursday. Economists forecast a 0.4 per cent increase, according to a Bloomberg survey. June also marked the 28th consecutive month of growth in retail sales.

He noted that retail sales volumes “still rose by a decent 0.7%” in the second quarter compared with the same period past year, suggesting consumer spending made “a healthy contribution to GDP growth”. The Confederation of British Industry had reported a sharp slowdown in sales growth after a bumper May, while the British Retail Consortium reported some of the fastest annual growth in spending in two years. Official data last week showed the fastest wage growth in more than five years. “We still look for a February Bank of England rate hike”.

The small decrease in sales came despite average store prices falling by nearly 3% on a year earlier, representing the 12th successive month of deflation in the retail sector.

United Kingdom retail sales fell unexpectedly by 0.2% in June, after consumers bought fewer household goods, and less food and petrol. The deflator on fuel was minus 10 per cent and the food- price deflator was minus 1.9 per cent.