Rolling coverage of the latest economic and financial news

7.57am BST

Here’s some snap reaction to the dip in retail sales last month, from economist Julian Jessop:

Collectors item! some weaker than expected UK data: #retail sales *fell* 1.4% m/m in May.

But…

1. distorted by fall in shop sales of food and drink as #hospitality reopened

2. overall sales still well above pre-#Covid levels after much larger increases in earlier months pic.twitter.com/aZsXrybYyz

UK retail sales in May (-1.4% MoM) largely a function of diverted spend back to hospitality & away from food retailers, also a levelling off of retail reopening in April. BUT total CHAPS-recorded spend on credit & debit cards has now plateaued since mid-April. One to watch. pic.twitter.com/SnxdZDyhbV

7.33am BST

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

Retail sales across Great Britain have fallen unexpectedly in May as the reopening of hospitality venues hit spending at food shops, and online.

anecdotal evidence suggests the easing of hospitality restrictions had had an impact on sales as people returned to eating and drinking at locations such as restaurants and bars.

Feedback from retailers suggested that sales were negatively affected in May by both the reopening of all retail sectors and the relaxation of hospitality restrictions, with specialist retailers of alcoholic drinks and tobacco reporting a monthly decline of 8.4%.

…. anecdotal evidence from retailers suggested increased spending on outdoor garden furniture in preparation for the summer and the relaxation of social gathering rules.

Discussing UK retail sales -1.4% m/m in May…anyone else running just in time delivery on paper towel and toilet rolls? No need to stockpile groceries at the moment. #Covid_19 #retail

Commenting on today’s figures, Director for Economic Statistics Darren Morgan said: (1/4) pic.twitter.com/qHTRbdMBGm

Darren Morgan continued: (2/4) pic.twitter.com/Mmnh8ZKg4d

Darren Morgan added: (3/4) pic.twitter.com/IhgJClQ91i

Darren Morgan concluded: (4/4) pic.twitter.com/PUkAmtrYXV

European Opening Calls:#FTSE 7147 -0.09%#DAX 15706 -0.14%#CAC 6664 -0.03%#AEX 734 -0.14%#MIB 25684 -0.12%#IBEX 9191 -0.06%#OMX 2272 -0.04%#STOXX 4157 -0.04%#IGOpeningCall

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Source: Business – The Guardian

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