LONDON (AFP) – British retail sales climbed more than expected in June, official data showed yesterday, offering respite for the government after heavy defeats overnight in votes centred largely on its economic record.
Sales by volume grew 0.7 per cent in June compared with growth of 0.1 per cent in May, helped by warmer weather and some competitive pricing as inflation cools, the Office for National Statistics said in a statement.
Analysts’ consensus forecast had been for a rise of 0.2 per cent last month.
The data comes after Britain’s ruling Conservatives yesterday held the former seat of former prime minister Boris Johnson but saw hefty majorities in two other seats blown away as scandals and a cost-of-living crisis took their toll.
Rishi Sunak had been expected to become the first prime minister to lose three Parliamentary seats on one day, but was spared that humiliation thanks to a narrow victory in the west London seat of Uxbridge and South Ruislip.
However, heavy defeats in the other two contests leave Sunak increasingly vulnerable ahead of next year’s likely general election.
Separate official data yesterday showed the government borrowed less than expected in June but continued to pay huge repayments on its debt owing to high interest rates.
The borrowing data brought “some cheer for the government on a day when it has lost two by-elections”, noted Deputy Chief Economist at United Kingdom research group Capital Economics Ruth Gregory.
