A splurge on food and drink over the Platinum Jubilee weekend failed to boost retail sales as consumer spending remained subdued amid runaway inflation.
Retail sales fell 0.1pc in June, according to the ONS. That’s ahead of May’s 0.8pc drop and better than expected, but still points to a worrying picture for the economy.
Food sales jumped 3.1pc thanks to the royal festivities. But that masked a 4.3% plunge in fuel sales as prices at the pump hit record highs, while other sectors also fell.
Meanwhile, GfK’s latest consumer confidence survey remained at its lowest level in 48 years, with soaring food and fuel prices leaving consumers feeling “seriously depressed”.
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What happened overnight
Asian stock markets were on track for their best week in months and the dollar held off recent highs after the European Central Bank raised rates for the first time in more than a decade and bets on the magnitude of rate hikes in the United States have subsided.
The Japanese Nikkei rose 0.2% this morning and was on course to post gains for a seventh straight day. This will likely be the index’s best week since March.
MSCI’s broadest index of Asia-Pacific stocks outside Japan slipped 0.03%, but the index is still set for its best week in about two months.
Hong Kong’s Hang Seng Index rose 0.1pc.
- Economy: Services PMI (UK, US, EU), Manufacturing PMI (UK, US, EU), Composite PMI (UK, US, EU), Retail Sales (UK)
- Company : Beazley (acting); JTC (Commercial Update)