Good economic news as sunny weather boosted retail sales

Retail sales grew in June as warm weather boosted spending and day trips, official figures show.

Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said. It's a bounce back from the 2.8% dip in May, but last month's figure was below economists' forecast 1.2% uplift as consumers dealt with higher prices from increased inflation.

Money blog: The odd rules that could land you with a big fine on holiday Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK. Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority. Where have people been shopping? June's retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up.

While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online. Read more from Money:Satellite tracker Spaceflux reaches lift-off with £5m funding boostTrade war uncertainty prompts halt to eurozone rate cuts Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years.

Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole. The June increases suggest that the May drop was a bump in the road.

When looked at as a whole, the first six months of the year saw retail sales up 1.7%. Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth.

When fuel is excluded, the rise was smaller, just 0.6%. Welcome news Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings.

The ONS lifestyle survey - backed up by hard data like the Bank of England's money and credit figures - shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month..