You are here: Home - Household Bills - News -

Pound dives as June retail sales undershot expectations

Written by: Paloma Kubiak
In the month to June, retail sales declined 0.5% but on a quarterly basis, the figure rose 2.1% off the back of the Royal Wedding, World Cup and continuing warm weather.

Retail sales in the three months to June increased by 2.1%, the strongest rise reported since 2004, according to the Office for National Statistics (ONS).

The largest uptick came from food stores, with shoppers stocking up on food and drink as barbecue season came into full swing.

But this also led to a decline in footfall in non-food stores, resulting in a monthly fall of retail sales by 0.5% in June.

Off the back of this news, sterling fell below the $1.30 floor, hitting its lowest level against the dollar in 10 months.

Renewed confidence to raise interest rates?

Ben Brettell, senior economist at Hargreaves Lansdown said: “The ONS said strong retail sales would add around 0.1% to second quarter economic growth. A conclusive rebound from a poor first quarter could give Bank of England policymakers renewed confidence to risk raising interest rates when they meet next month. Softer wage growth and inflation data this week had called into question whether higher interest rates were necessary or appropriate, especially given intensifying political uncertainty.”

Jacob Deppe, head of trading at online trading platform, Infinox, said June’s weak retail sales data is an “enigma” and could reduce the prospect of an interest rate rise next month.

He said: “It appears many households saw the hot weather and distraction of the World Cup as a welcome distraction from the high street rather than an excuse to spend. This week’s wage growth and inflation figures add to the picture of people feeling the pinch.

“While retail sales have been very strong over the past three months as a whole, the June drop-off has added to the uncertainty on rates next month.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
A row of terraced houses overlooks a view of London
Official: House price growth slumps to five-year low

Average house prices in the UK rose 3% in the year to May 2018, according to figures from the Office...