U. K. retail sales see surprise rise in July, while consumer confidence plunges – MarketWatch

Oughout. K. store sales rose modestly in July, surprising economists who were expecting a drop, whilst separately the survey showed plummeting consumer confidence.

Retail sales volumes rose by 0. 3% in July 2022 following a fall of 0. 2% in June 2022 —- revised from a fall associated with 0. 1%, the Office for National Statistics reported on Friday. Economists polled by FactSet Research were forecasting monthly sales to drop 0. 1%.

Excluding fuel, sales increased 0. 4% on the month.

Over the last 12 months, while the value went up 7. 8%, actual volume dropped 3. 4%, showing the impact of inflation, which within the U. K. was 10. 1% .

Non-store retailing, predominantly online retailers, made the biggest contribution to This summer numbers, rising 0. 7%. The ONS said feedback from online retailers indicated that a range of promotions in July 2022 boosted sales.

Fuel product sales fell 0. 1% and non-food stores dropped 0. 3%.

“Within the particular flat month on 30 days retail sales headline there is a continued decline in the volume of goods bought but at higher prices.   I expect volumes in order to continue to fall given the increasing pressure on U. K. disposable income this winter, ” said Emma Mogford, fund manager, at Premier Miton Monthly Income Fund, in a note.

The pound GBPUSD, -0. 84% has been last trading down 0. 1% in order to $1. 1909. The 10-year U. Nited kingdom. gilt flower 6 basis points to 2 . 388%.

Some attributed the pound’s weakness in order to a survey released Fri from GfK , whose customer confidence index fell one point to -41 within June, setting a new record low, taking out the previous month’s report fall.  

“With prices rising faster than wages, and the particular prospect of strikes plus spiralling pumpiing causing the summer associated with discontent, many will be surprised that the catalog has not dropped further, ” said oe Staton, client strategy director at Glasfaserverstärkter kunststoff, in a press release.

“The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession, ” said Staton.

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