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UK business activity at four-month low due to staff shortages amid ‘pingdemic’ – live | Business

Good morning, and welcome to our rolling protection of the world economic system, the monetary markets, the eurozone and business.

Retail gross sales within the UK staged a small restoration in June, rising 0.5% from the earlier month, when gross sales fell 1.4%, due to a surge in folks going out as bars, pubs and eating places reopened indoors. The studying is barely higher than the 0.4% acquire predicted by economists.

The Office for National Statistics said gross sales had been boosted by a 4.2% improve at meals shops, as folks purchased extra food and drinks at the beginning of the Euro 2020 soccer event.

The Olympic Video games, additionally delayed from final 12 months, open in Tokyo at this time. You possibly can learn extra right here:

UK petrol and diesel gross sales additionally elevated in June, by 2.3%, the ONS stated, as folks travelled extra, however they continue to be 2.1% beneath their pre-coronavirus pandemic February 2020 ranges. Non-food shops reported a 1.7% drop in gross sales volumes, due to declines at furnishings shops and clothes retailers. Family items suffered their first decline that wasn’t pushed by lockdown for the reason that begin of the pandemic.

On-line purchases stay a lot increased than earlier than the pandemic, however have fallen again as extra folks go to bodily retailers. The proportion of gross sales on-line fell to 26.7% in June, from 28.4% in Could.

The image is brighter for the previous three months to June, when retail gross sales rose 12.2% from the earlier three months, pushed by a robust rebound in April when non-essential retailers had been allowed to reopen after the newest coronavirus lockdown.

General, retail is in fairly good well being – gross sales in June had been 9% above pre-virus ranges.




UK retail sales.

UK retail gross sales. {Photograph}: Workplace for Nationwide Statistics

This morning, we’re additionally getting the flash readings on the July trade surveys from IHS Markit. Sara Johnson, government director of worldwide economics at Market, says:


Within the face of headwinds from the Delta variant of the Covid-19 virus, the worldwide financial enlargement is shifting ahead – albeit extra tentatively than a month in the past. Outlooks in superior international locations with excessive vaccination charges reman shiny, however near-term prospects in rising and creating international locations with low vaccination charges are murkier.

Asian inventory markets are combined after a unstable week when merchants have been torn by hopes for the worldwide restoration and fears over the unfold of the Delta variant. Hong Kong’s Cling Seng has fallen 1.1%, Singapore’s Straits Occasions Index is down 0.2% and the Australian market is flat.

Michael Hewson, chief market analyst at CMC Markets UK, says:


The restoration from the Monday sell-off continued apace yesterday, with the FTSE-100 being the notable social gathering pooper … whereas the remainder of Europe closed increased for the third day in succession.

US markets, and specifically tech shares led the best way, with the Nasdaq 100 closing at a brand new file excessive, with the S&P 500 simply falling brief. This constructive end ought to translate into the next European open regardless of a weaker Asia session, and with Japanese markets closed.

Yesterday’s European Central Financial institution assembly didn’t present a lot in the best way of pleasure with ECB President Christine Lagarde as soon as once more speaking so much whereas saying little or no.

The brand new ahead steerage merely outlined that the ECB was probably to be ultra-accommodative for a very long time to come, and if something was the equal of giving a reasonably battered outdated automobile a brand new paint job, and a fast engine tune-up. It appears nicer however it’s nonetheless the identical outdated banger beneath.

The Agenda

  • 8.15am BST: France Markit Manufacturing/Companies/Composite PMI for July
  • 8.30am BST: Germany Markit Manufacturing/Companies/Composite PMI for July
  • 9am BST: Eurozone Markit Manufacturing/Companies/Composite PMI for July
  • 9.30am BST: UK Markit Manufacturing/Companies/Composite PMI for July
  • 2.45pm BST: US Markit Manufacturing/Companies/Composite PMI for July

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