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Correction to Previous Bullet: July, Not June PMI




Risk on keeps the lid on Govies

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UK June retail sales increased at the fastest pace since November 2016, Ben Jones, Principal Economist at the CBI said Friday, picking up after a gloomy 2021 to date. The headline Distributive Trades Volume of Sales rose to +25 from +18 in May. "This was the latest sign that the success of the vaccination programme is feeding through to stronger consumer confidence which, along with the re-opening of hospitality, is encouraging shoppers back onto the streets," Jones said.

Sales continued to be above normal for grocers and firms in the home improvement sector. While department stores saw a small uptick in sales, clothing stores again reported subdued sales figures. Stock levels in relation to expected sales slipped to a record low in June and they are forecast to remain too low in July.

"The return of demand is patchy, with inner-city footfall still well down. The outlook is also clouded somewhat by supply pressures, with stocks seen as too low compared with expected sales, as logistical and capacity challenges continue to hamper global activity.", Jones added.

Source: CBI Distributive Trades Survey