Great Britain retail sales drop sharply as euro boost fades, takeout increases | Action

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Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone and business.

Retail sales in Great Britain fell sharply in July, as the push for Euro 2020 faded away and people were eating more and thus buying less food and drink for home consumption.

Retail sales volumes fell 2.5% from the previous month, according to the Office for National Statistics, while economists had expected a slight rise of 0.4%. In June, sales rose 0.5%.

Food sales fell 1.5% last month after a 3.9% increase in June when sales in euros were boosted. Gasoline and diesel sales fell 2.9%, the first monthly decline since February, as heavy rains in early July reduced the number of cars on the road.

Apparel and home goods stores posted a 2% drop while department stores were the only sector to report a 0.2% monthly growth.

The Office for National Statistics said transportation delays have led to shortages of some items, such as electrical goods. Other non-food stores such as chemists, toy stores and sports retailers suffered a 10.1% decline, the first monthly decline since February, driven by second-hand stores and computer and communications retailers.

Office for National Statistics (ONS) (ONS)

Our latest data shows that retail sales fell by about 2.5% in July 2021 compared to June 2021.

This is 5.8% higher than pre-pandemic levels in February 2020 https://t.co/zHf7yPqIWY pic.twitter.com/FvF5iPV53u

August 20 2021

Separate figures showed the UK government borrowed £10.4 billion last month – this was the second-highest July borrowing since monthly records began in 1993, but £10.1 billion less than in July 2020.

Rishi Sunak, Consultant said:

Our recovery from the pandemic is in full swing, buoyed by the tremendous support provided by the government.

But the past 18 months have had a huge impact on our economy and our public finances, and there are still many risks involved.

We are committed to maintaining public finances on a sustainable basis, which is why I outlined in the budget in March the steps we are taking to keep debt under control in the coming years.

Office for National Statistics (ONS) (ONS)

Public sector net borrowing excluding public sector banks was £10.4 billion in July 2021.

This was the second highest July borrowing since monthly records began in 1993, but £10.1 billion less than July 2020 https://t.co/ON50Rs82jt pic.twitter.com/eimHfJDDpU

August 20 2021

Apple is delaying its return to corporate offices from October until January at the earliest due to a spike in Covid-19 cases and concerns about new variables. The iPhone maker told employees in a memo that it will confirm reopening plans one month before asking employees to return to the office, according to Bloomberg News.

European markets are set to open slightly lower after experiencing their worst day of the month yesterday, as investors worry about the spread of the delta virus, slowing economic growth in China and the US Federal Reserve’s plans to scale back its asset purchase program this year.

London’s FTSE 100 closed 1.5% lower, Germany’s Dax lost 1.2% and France’s CAC fell 2.4%. Wall Street did better, with the S&P 500 and Nasdaq recovering to end slightly higher at 0.1% while the Dow Jones Industrial Average fell 0.19%.

In Asia, Japan’s Nikkei lost 1.1%, Hong Kong’s Hang Seng fell 2% and the Australian market fell 0.2%. Japanese automakers were hit hard on the back of Toyota’s decision to cut car production in September, with Toyota shares losing 5%.

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