U.K. Shoppers’ Sunny Summer Won’t Change Gloomy Consumer Outlook
- Sales including fuel rose 0.6% in June, beating forecasts
- Average store prices increase adding to inflation concerns
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A summer boost for U.K. retailers probably won’t be enough to persuade a majority of Bank of England officials that an immediate rate increase is warranted.
While June’s heat wave helped lift sales 0.6 percent -- more than economists forecast -- the Office for National Statistics said volumes in the first half were still “relatively flat.” The hottest temperatures since 1976 bolstered clothing purchases, offsetting drops in food and fuel. Much of the pickup was driven by rebounds in household goods and non-store sales, following declines in May.