UK Retail Sales Rumble: Summer Shocks & Bank Rate Bounces
Ever wondered how the UK shop shelves feel after a sunny season? This week’s retail sales haul revealed that shoppers kicked off Q3 with a 0.5% month‑over‑month bump. Strip out all the fuel drama, and it climbs to a breezy 0.7%—a clear nod that the first half’s steady burn‑out isn’t just a one‑off.
Top performers and the “big cheap‑cash” boost
- Department stores ran riot: their sales surged like a heat‑wave full of sales.
- Sports gear shops shot up, thanks to summer markdowns, Euro 2024 hype, and the usual run‑away fan frenzy.
- Overall, the mix felt the expected “summer boost” vibe.
Bank of England: Same pace, same patience
While the latest numbers might not rewrite the BoE’s script, the central bank’s next rate cut still looks poised for November. Policymakers remain cautious, trimming policy room slow‑ly as they juggle stubborn price pressures. The goal: keep consumer optimism and spending humming – and hopefully avoid a fiscal spin‑out.
But threesomes of risk stalk ahead
- The labour market may keep cooling, which could foreshadow a dip in spending.
- Fiscal tightening looms after the end‑October Budget, adding a pinch of tension.
Keep your eye on the pulse: the retail figures charted the path for the next quarters, but the real plot twists stay close to the wallet and the bank’s cautious gears.
