Home improvements: surge in DIY purchases help boost rise in retail sales to almost pre-Covid level

A surge in DIY home improvements has fuelled a recovery in retail sales back to almost the same level as before the Covid pandemic hit, official figures reveal today.

They jumped by nearly 14 per cent in June, compared to the month before, according to the Office for National Statistics.

The figures beat City expectations and were hailed by one expert as the “most positive recovery indicator for UK we have seen so far”.

However, other economists warned the figures risk being misleading, with one stressing retail expenditure had “cannibalised lots of previous hospitality spending” in pubs, restaurants and cafes, and that trade on the high street is still down by a third, with central London still badly affected.

The bounceback in overall retail volume, with many shops reopening in June, was significant and it is now just 0.6 per cent lower than in February, before the economy was knocked off course by Covid-19, or down 2.7 per cent in spending terms.

The figures also highlighted the shift to online, with more than £3 in £10 being spent this way, down slightly on May’s record figure of 33.3 per cent but far higher than the 20 per cent in February.

Jonathan Athow of the ONS said: “Retail continued to recover from the sharp falls seen in April, with overall sales almost back to pre-pandemic levels. But there are some dramatic differences in sales across the retail industry. Food sales continue above their pre-pandemic levels due to the closure of cafes, restaurants and pubs.

“On the other hand, clothing sales remain depressed and across the high street sales in non-food stores are down by around a third.”

Andrew Sentance, former member of the Bank of England’s monetary policy committee, tweeted: “Strong rebound in retail sales as lockdown eases. The most positive recovery indicator for UK we have seen so far.”