Retail Sales Grew 14% In June

Sales in England, Scotland and Wales grew 13.9% in June compared with the previous month (may) as non essential stores resumed operations, suggesting a possible "V-shaped" economic recovery, according to ons. But some economists are wary of sales results, saying they don't represent total spending, and explain that retail sales usually account for only 31% of household spending.

Among them, supermarket sales continued to rise, online consumption accounted for almost one third of the total sales in June, accounting for 3 pounds per 10 pounds, which belongs to online consumption. Non store sales (including online and mail orders) were 53.6% higher than in February this year. Fuel sales grew by more than a fifth as more and more people resumed driving. However, clothing sales remained sluggish and sales in non food stores in downtown stores were still down by about a third compared with before the outbreak of the new coronavirus.

Business activity in the services and manufacturing sectors rebounded and climbed to 57.1 in July, according to the purchasing managers' index (PMI) released by IHS Markit. More than 50 for the first time since February. However, the employment index of PMI is still 38.9, indicating that enterprises are still laying off workers. Chris Williamson, chief business economist at IHS Markit, warned that while the recession seemed short-lived, the negative economic impact could be deep. Even if there is a rebound in July, there is still a long way to go before the production lost due to the new coronavirus outbreak can be recovered, and the recovery of "V" cannot be guaranteed.