June Boom Belies Fears of UK Sales Slowdown

28 July 2003

New retail sales figures defy the widely held view that Britons are slowing their spending.

According to the Office for National Statistics, June sales surged 1.6% on the previous month and 6% year-on-year, confounding analysts’ modest expectations with the sharpest leap since January 2000.

Driving the boom was the warmest June since 1976, with sales of barbecues, food and drink seeing particularly sharp increases. Indeed, sales were so strong that retailers marginally raised their prices – the first time they have done so in around two years.

Earlier this month, the Bank of England cut interest rates in the belief that consumer spending growth was petering out.

Data sourced from: Telegraph.co.uk; additional content by WARC staff