Hot weather boosted retail sales in June

Retail sales rebounded in June as the hot weather boosted fuel and supermarket sales, according to official data.

Sales volumes were up by 0.9% in the month, the Office for National Statistics (ONS) said.

People bought more drinks at supermarkets and summer clothes, while fuel sales were up as consumers "ventured out and about in the sunshine", the ONS said.

The rise comes after sales fell by 2.8% in May, which was more than the ONS had previously estimated.

After May's drop, a rebound in June had been expected, but the increase was lower than many economists had forecast.

Ruth Gregory, deputy chief UK economist at Capital Economics, called June's sales increase "disappointingly small".

The monthly retail sales numbers have been up and down lately, reflecting weather patterns and a late Easter.

But overall, the rise in retail spending has lost momentum, with sales up just 0.2% between April and June compared with the previous three months.

That ties in with a separate survey from researchers Gfk which suggests that consumer confidence is weaker than a year ago, and supports economists' views that next month's figures on economic growth will show it was lacklustre in the second quarter of this year.

Sales in food stores were up 0.7% in June, the ONS said, while fuel sales rose 2.8%.

"The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases," said ONS senior statistician Hannah Finselbach.

"It was also a good month for fuel sales as consumers ventured out and about in the sunshine."

The Met Office said that England had its warmest June on record, and the second warmest for the UK as a whole, following two heatwaves.

Sales at non-food stores rose, the ONS said, with clothing benefiting from promotions and the hot weather. This was partially offset by a fall in sales of household goods such as furniture.

Jacqueline Windsor, head of retail at PwC UK, said the rebound in sales at supermarkets and fashion retailers was down to shoppers entertaining at home and refreshing their wardrobes.

"However, England's warmest June on record also discouraged shoppers from visiting high streets, with footfall declining and online retail sales penetration increasing," she said.

The figures come after a string of negative news on the economy.

Earlier this week, data revealed government borrowing was higher than expected in June as increased spending on public services and debt interest payments outstripped revenue from taxation.

This was after data showed the economy shrank unexpectedly in May and inflation rose to 3.6%.