UK retail sales rebounds sharply in June, a Big beat on expectations

The office for National Statistics (ONS) published the UK’s retail trade report for the month of June, which showed that the UK consumer spending rebounded sharply, coming in much stronger-than market expectations across the time horizon.

The UK’s retail volumes came in at 0.6% in June m/m, while the annualized retail spending jumped to print 2.9% reading. Markets had estimated a 0.4% expansion on a monthly basis; while a 2.5% reading was expected on yearly basis.

Retail sales excluding volatile items such as fuel also bettered market expectations, arriving at 0.9% m/m and 3.0% y/y.

Commenting on today’s official retail figures, Kate Davies, ONS Senior Statistician noted:

“Today’s retail sales figures show overall growth. A particularly warm June seems to have prompted strong sales in clothing, which has compensated for a decline in food and fuel sales for the month.”

"Looking at the quarterly data, the underlying trend as suggested by the three-month on three-month movement is one of growth, following a fall in quarter 1, suggesting a relatively flat first half of 2017."