Cooler UK weather chills retail sales in June
Business
Cooler UK weather chills retail sales in June
LONDON (Reuters) - British retail sales volumes fell by more than expected in June, after unseasonably cooler weather put off shoppers, official figures showed on Friday.
Sales volumes dropped by 1.2% last month after a 2.9% jump in May, the Office for National Statistics said.
A Reuters poll of economists had on average forecast sales volumes would drop by 0.4% on the month.
While wages are now rising more quickly than inflation, British shoppers have been squeezed by high inflation over the past two years. It has slowed recently and held at the Bank of England's 2% target last month.
However, underlying inflation pressures have diminished hopes among investors for an interest rate cut on Aug. 1, the date of the BoE's next scheduled monetary policy announcement.
Lisa Hooker, PWC's leader of industry for consumer markets, said, shoppers were still reluctant to spend despite the fall in inflation, wage increases and lower social security contributions.
Britain held a parliamentary election on July 4 that was won by the centre-left Labour Party.
