Retail sales dipped unexpectedly in June to record the lowest annual growth rate in two years in what economists described as a temporary setback that would not derail the recovery.
Official figures showed the volume of consumer goods sold fell 0.2 per cent between May and June, knocking sales growth for the year down to 4 per cent, its worst performance since September 2014. Stripping out an adjustment for falling prices, retail spending in the second quarter was up just 1.3 per cent on an annual basis, the weakest quarterly growth since the first three months of 2013.
The disappointing numbers from the Office for National Statistics hit the pound, which slipped 0.7 per cent against the euro to €1.4180 and edged slightly lower against