UK retail sales for the month of June reversed their May gains completely - TDS

Research Team at TDS, notes that the UK retail sales for the month of June reversed their May gains completely, falling 0.9% m/m.

Key Quotes

“Weakness was broad-based, with clothing stores in particular feeling the brunt of wet cool June weather. Despite the downside miss, it’s clear that consumers weren’t overly nervous ahead of the referendum, with retail sales accelerating to 1.6% q/q growth in 16Q2, their strongest pace since 2014.

The government’s borrowing figures for the month of June were also released, showing a notable improvement in borrowing to £7.8bn. Overnight, BoE MPC member Kristin Forbes had an article in the Telegraph suggesting that she would not support easing at the their August policy meeting. However she is a known hawk, and while this tends to confirm our view (based on the July minutes) that there is a broad disagreement on the MPC on the policy response to Brexit, we still expect a significant package to come in August.”