US economy sees ‘spectacular acceleration’; UK retail sales surge; China crackdown weighs on bitcoin – as it happened

Graeme Wearden

from on 2021-05-21 17:49 (#5J38H)

Rolling coverage of the latest economic and financial news

Latest: Bitcoin hit by China crackdown call
US PMI shows spectacular growth'
But input prices for PPE, transport and raw materials also surge
UK PMI hits record high this month
Eurozone firms also growing strongly as lockdown eases

Earlier:

6.48pm BST

Right, time to wrap up. Here's a quick recap.

Companies on both sides of the Atlantic have reported a surge in activity this month as lockdowns are eased.

6.14pm BST

The US dollar has rallied after today's US PMI report showed American companies were growing spectacularly fast'.

The news that output was surging, and that raw material shortage were pushing up prices, boosted the greenback. It has pulled the pound back down to $1.415, having hit $1.422 for the first time since February.

5.54pm BST

The UK's second largest mortgage lender, Nationwide Building Society, said house prices would continue to rise this year beyond the stamp duty holiday but warned higher costs could make it harder for first-time buyers to get on the property ladder.

Its chief executive, Joe Garner, said everyone had been a little bit surprised" by how strong the housing market had been throughout the Covid crisis, even when taking government support, including business loans and wage subsidies, into consideration.

People don't say: Oh look, there's a discount on stamp duty, let's move home.' That's not how it works.

People are thinking of their house less as an investment and more as a home."

5.50pm BST

European stock markets closed higher, with the Stoxx 600 gaining 0.6%.

Germany's DAX rose by 0.4%, while France's CAC gained 0.7%, as this morning's strong eurozone PMI reports lifted spirits.

5.42pm BST

Back in the equity markets, it was a rather subdued session in the City.

The UK's FTSE 100 index of blue-chip shares closed just two points lower, at 7018, despite the flurry of strong economic data.

5.35pm BST

Here's Reuters take:

China will crack down on bitcoin mining and trading activities as part of efforts to fend off financial risks, the State Council's Financial Stability and Development Committee said on Friday.

China says it will crack down on bitcoin mining, trading activities https://t.co/Qsds5cuUng

5.20pm BST

China's latest threat to crack down on cryptocurrency mining came as part of an wider push to control financial risks, points out Bloomberg:

They say:

Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.

The statement late Friday after a meeting of the Financial Stability and Development Committee was the latest blow in a rough week for the cryptocurrency market, rattled by forced selling and a possible U.S. tax clampdown.

Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks https://t.co/WjnpWBmDqP

5.12pm BST

China's new resolve to crack down on bitcoin mining and trading caps a rough week for the cryptocurrency.

Bitcoin hit its lowest since February on Monday, after Tesla's Elon Musk appeared to imply on Twitter that he might sell hit bitcoin holdings, or already have done so, having criticised its high energy use.

Bitcoin falls after China calls for crackdown on bitcoin mining and trading behavior https://t.co/t4Z57rtsBi pic.twitter.com/OigSAUKUEg

4.41pm BST

Bitcoin is taking another tumble, after a fresh call from Chinese authorities to crack down on mining and trading of the cryptocurrency.

CNBC have the details;

In a statement from Chinese Vice Premier Liu He and the State Council, authorities said tighter regulation is needed to protect the financial system.

The statement, released late Friday in China time, said it is necessary to crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field."

#Bitcoin #China pic.twitter.com/Ug23Q8dK4T

Bitcoin has erased gains https://t.co/kUGQcjxERZ pic.twitter.com/2aavPSt7ZT

4.29pm BST

In another encouraging signal, eurozone consumer confidence has risen this month, to its highest level since before the pandemic.

The European Commission's gauge of consumer morale in the euro area jumped to -5.1 this month, from -8.1 in April.

"The V-shaped recovery is complete." @ClausVistesen on Advance Consumer Confidence, #Eurozone, May #PantheonMacro

4.11pm BST

Sales of existing homes in the US has fallen, due to a dearth of properties on the market which is also fuelling a price boom.

Existing home sales dropped by 2.7% to a seasonally adjusted annual rate of 5.85 million units last month. That's the third monthly drop in a row, according to figures from the National Association of Realtors.

#Existing #Home sales in the US unexpectedly sank -2.7% to 5.858 million in April of 2021, compared to forecasts of a 2.0% rise. It marks three consecutive months of declines as housing supply continues to fall short of demand. YoY sales surged 33.9%#DGCX #FOREX #FUTURES #FXNEWS pic.twitter.com/ubJxc8VuB1

Home sales were down again in April from the prior month, as housing supply continues to fall short of demand.

We'll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.

US existing home sales peaked at 6.73mn in Oct, but dropped to 5.85mn in Apr. Higher prices (13.6%YoY) are a deterrent. This is attracting a bit more supply, but supply is still low by historical standards and anything decent is snapped up - on avg just 17 days to sell a house... pic.twitter.com/WSvKZc4TQk

3.39pm BST

The big picture from today's PMI surveys is that companies in the US, UK and eurozone are recovering fast.

But Japan's private sector is shrinking as new Covid-19 restrictions are imposed (its composite PMI fell to 48.1 in May, below the 50-point mark showing stagnation).

Wrap up of today's flash #PMI surveys for May highlights US out-performance. Record PMI readings for the US and UK, while Eurozone is seeing fastest order book growth for 15 years. But Japan lags amid further covid wave. pic.twitter.com/TKKkixDhQ8

But the US is also seeing BY FAR the steepest rise in price pressures, as measured by the #PMI gauge of prices charged for goods and services. Record highs for these indices were however seen not just in the US but also UK and Eurozone in May pic.twitter.com/zIlfBW6Xge

3.36pm BST

Supply chain problems and raw materials shortages are starting to eat into US factory bosses' optimism..

The US PMI report shows that business confidence among manufacturers slipped to a seven-month low in May.

Firms stated that optimism stemmed from stronger client demand and success of the vaccine rollout. That said, manufacturers highlighted that strain on capacity and raw material shortages are expected to last through 2021.

3.17pm BST

US companies posted spectacular" growth this month as America's economy continued its strong recovery.

Growth was driven by a surge in service sector activity as the economy reopened, while factory output also accelerated amid stronger client demand.

US economic growth continues to accelerate in May via Composite PMI survey data (a GDP proxy). PMI rose to a record high for the series (since 2007). The economy posted a "spectacular acceleration of growth," says chief business economist for IHS Markit: https://t.co/wWQHvWD59Q pic.twitter.com/DR7Td0avFQ

Commonly noted were increases in PPE, fuel, metals and freight costs amid significant supplier delays.

The steep rise in costs fed through to the sharpest increase in output charges since data collection began in October 2009, with record rates of inflation registered for both goods and services as soaring demand boosted firms' pricing power.

Subsequently, backlogs of work accumulated at the fastest pace since data collection for the series began 14 years ago, as firms were constrained by raw material shortages.

While job creation was again seen in the goods-producing sector, the rise was the slowest for five months, linked in part to difficulties filling vacancies. Measured overall, employment rose for the eleventh straight month, but the rate of increase eased from April's survey high

Flash #PMI data signalled another unprecedented upturn in U.S. private sector output in May (PMI: 68.1). Services growth was the fastest on record, with manufacturing also seeing a quicker expansion. Cost pressures mounted further, however. Read more: https://t.co/LJ6xtEH6f5 pic.twitter.com/nG2uzRYojR

The US economy saw a spectacular acceleration of growth in May, the rate of expansion of business activity soaring well above anything previously recorded in recent history as the economy continued to reopen from COVID19 restrictions.

The service sector saw an especially impressive surge in growth, beating all prior records by a wide margin, accompanied by another solid expansion of manufacturing output.

2.37pm BST

European Central Bank chief Christine Lagarde has tried to calm talk that the ECB could decide to start winding down its 1.85trn emergency bond purchase scheme soon.

We are committed to preserving favourable financing conditions using the PEPP envelope, and to do so until at least March 2022,

It's far too early and it's actually unnecessary to debate longer-term issues. Our focus in June is going to be on favourable financing conditions for the economy at large and to all sectors."

ECB President Christine Lagarde plays down the possibility of a major change away from the current stimulus settings when policy makers meet next month https://t.co/RCXEmQEnPC

2.23pm BST

No wonder luxury goods makers such as Richemont are doing well. The number of billionaires in Britain has hit a record high during the pandemic.

With wealth surging despite a year of economic turmoil, thanks to the central-bank fuelled surge in asset prices, calls for higher taxes on the ultra-rich are growing.

There are 171 billionaires in the UK, 24 more than a year ago, according to an annual ranking compiled by the Sunday Times. It was the highest number in the 33 years of the rich list, as the combined wealth of billionaires in Britain grew by more than one-fifth.

The bosses of British online retailers Ocado, Boohoo, The Hut Group (THG) and Asos all benefited from huge increases in their wealth as spending for locked-down consumers migrated online.

2.08pm BST

Switzerland's Richemont, maker of Cartier watches, has posted strong results today as demand for luxury goods, particularly jewellery, rebounds.

While the region was the first to suffer from the outbreak of Covid19, it was also the first to see sales rebound sharply as early as May 2020 in mainland China. Triple-digit sales growth in mainland China more than offset declines in locations affected by a halt in tourism, notably Hong Kong SAR and South Korea.

In jewellery basically everything sells," Cartier head Cyrille Vigneron said on the call.

Citi analyst Thomas Chauvet said it is all about jewellery and the future is bright", reiterating his Buy rating.

1.18pm BST

The blustery weather buffeting the UK overnight has blown Britain to a new wind power record, according to the National Grid.

You don't need us to tell you it's windy (take care out there!). But we do have news - our provisional data indicates a !

At 2am-3am this morning #wind was meeting 62.5% (16.3GW) of GB #electricity demand, beating last Aug's record https://t.co/QXKqljQ4cS

1.00pm BST

The Bank of England is asking for views on how to make its corporate QE programme more environmentally friendly.

It has launched a consultation, looking at options for greening" the Corporate Bond Purchase Scheme, which buys 20bn of debt issued by UK companies. It's part of the much wider 895bn QE programme, which mainly buys UK gilts.

At first sight it might seem the answer is simple: just sell all our high-emission bonds, and use the proceeds to buy low-emission ones. The carbon footprint of the CBPS would fall sharply. And, to the extent the Bank's actions were influential, the financing costs of high-emissions firms should rise, sending a powerful wakeup call. But indiscriminate portfolio decarbonisation' of this kind cannot be the best strategy for investors like the Bank seeking to incentivise economy-wide transition to net zero, for two key reasons:

First, the high-emissions firms whose bonds we would be selling are the ones we most need to be at the vanguard of emissions reduction. But selling their bonds doesn't destroy them as assets, it simply transfers them to other investors. And if investors seeking to incentivise transition are all decarbonising, those left holding the bonds are by definition going to be those with a weaker commitment to net zero; Second, simply selling anything with a high carbon footprint penalises those with strong and credible emissions reductions plans just as much as it does those with no such plans.

Divestment is a powerful tool, and should remain squarely in the toolkit. But it should be used as a credible threat to reinforce incentives, not an indiscriminate quick fix.

News: @bankofengland putting its money where its mouth is on new green mandate by releasing a comprehensive consultation paper on greening its corporate QE programme.

Glad to see its considering excluding issuers incompatible with net zero!
1/3https://t.co/OU2SGLwaEb pic.twitter.com/IfHVQffJG3

We @YannisDafermos @M_Nikolaidi @DanielaGabor have outlined a Lower-carbon scenario eliminating the bonds issued by the most carbon-intensive sectors and adds bonds that can be conducive to a greener economy.
2/3https://t.co/Cs8kgcyic1 pic.twitter.com/pOSsiSYRC9

Building on this excellent work, next up it needs to green its "credit policy" (e.g. 100bn Term Funding Scheme), collateral framework, and prudential policy in order to fulfil its mandate.
3/3

12.29pm BST

Last month was the busiest April in the UK housing market since the financial crisis, despite sales cooling after March's surge.

HMRC has reported there were 111,260 residential property transactions last month - the highest total for an April since 2007, just before the credit crunch.

'Although these figures reflect many sales agreed several months ago, they show a reduction in activity as many buyers did not expect to still take advantage of the stamp duty holiday. However, activity has picked up strongly since the deadline was extended, allowing many to continue where they left off, as well as encourage new entrants to the market.

'Transactions are always a better measure of housing market strength than prices which tend to fluctuate. On the ground, supply is still a problem even though listings have improved as rollout of the second jab in particular is encouraging sellers to make their properties available.

There were 117,860 UK residential property transactions in April 2021 according to HMRC, which was 35.7% lower than in March 2021 (the original end date for the Stamp Duty holiday) but still 18.7% higher than the average for 2018-19...#ukhousing #housing https://t.co/c0iJCJrvgC pic.twitter.com/ZwGMtAU2E5

Transactions are down by a third month on month in April, as competition from buyers tailed off slightly after the rush to meet the initial stamp duty deadline. But, on the ground, we are not seeing activity slow down at all and our agents are as busy as ever. The number of new applicants that registered with our branches in April was on par with the number that signed up when the market reopened last June, and we now have 22 buyers chasing every instruction across our network of branches.

Sales across our branches in London's new 90-minute commuter belt were the busiest in April - with Chichester, Ipswich and Northampton leading the way.

11.36am BST

The pound has rallied, with the jump in retail sales and private sector activity boosting optimism in the UK recovery.

Sterling has jumped almost half a cent against the US dollar to $1.423, its highest since February (when it hit a near-three-year high).

11.07am BST

Today's UK PMIs are the sign that Britain's economy is already in a better place than after the first wave last summer, says ING economist James Smith.

Smith points out that hiring is clearly picking up quickly, global demand is making up for Brexit disruption, and rising cost pressures may be temporary (as the BoE suggests).

Overall, the UK's growth prospects look good this year. Unless concerns surrounding the India-originating Covid variant start to reverse the recent rise in consumer/business confidence, we expect just-shy of 7% growth this year, including 5% growth in the second quarter.

It's worth noting that this latter figure is mainly a function of the April/May reopenings, and we don't think a delay to the final lifting of restrictions in June necessarily needs to make a significant impact on near-term GDP.

The rise in UK PMIs suggests the economy is already in a better place than after the first wave last summer. Most UK data points are now back to, or above last summer's levels, says @SmithEconomics https://t.co/L8YOriSJxK pic.twitter.com/o4NkYmE2r6

10.57am BST

Rising demand from consumers, high commodity costs and creaking supply chains are likely to add up to higher inflation, warns Jai Malhi, global market strategist at J.P. Morgan Asset Management:

Today's UK PMI release showed that last month's strong reading was not a one-off. With the economic reopening still underway the rise in the manufacturing PMI showed there is still more growth to come.

Appetite from consumers to spend is clearly booming, but at the same time UK businesses have faced even more acute supply bottlenecks this month - causing input prices to reach their highest level on record. This kind of mismatch between demand and supply usually leads to higher prices for the end customer.

10.42am BST

However.... among the encouraging signs of a flowering recovery, we also have this thorn:

Severe delays continued across global supply chains in May, as signalled by a steep lengthening of vendors' delivery times. Goods producers responded by accumulating stocks of purchases for the first time in 2021 to date.

Strong demand for manufacturing inputs, higher transport bills and a spike in commodity prices resulted in the fastest increase in overall purchasing costs since this index began in January 1992.

10.32am BST

UK manufacturers also reported a jump in new export orders, Markit says:

Workloads were also boosted by a turnaround in export sales, with new orders from abroad rising at the strongest pace since this index began in January 1996. Manufacturers noted a sharp improvement in demand from the US and China, alongside an easing in Brexit-related difficulties with exporting to EU clients.

10.25am BST

UK firms are also taking on more staff to handle this surge in activity

Private sector employment is rising this month at the quickest pace since June 2014, as this chart from the PMI report shows:

10.19am BST

Understandably, hotels, restaurants and other consumer-facing services reported the biggest upturn in demand this month.

But, improvements were reported across the board in all sectors, leading to the fastest growth since the Composite PMI began in 1998.

Factory orders are surging at a record pace as global demand for goods continues to revive, and the service sector is reporting near-record growth as the opening up of the economy allows more businesses to trade. Business confidence has meanwhile hit an all-time high as concerns about the impact of the pandemic continue to fade.

The output and order book growth seen in May, and record level of business optimism, are consistent with GDP rising sharply in the second quarter and for strong momentum to be sustained through the rest of the year, albeit with the current quarter likely representing a peak in the growth rate.

10.05am BST

UK business confidence hit a record high this month, as concerns about the impact of the pandemic continue to fade.

However, May's PMI report also shows some firms are still concerned about Brexit disruption, and Covid-19 travel restrictions.

Business expectations for the next 12 months edged up to a new record high during May, largely reflecting a surge in order books and a faster than anticipated recovery in demand since the lockdown period.

Among the small minority of firms citing downbeat expectations, this was mainly attributed to Brexit-related issues. Some also cited worries about the prospect of prolonged international travel restrictions. However, there was a notable easing of concerns about future lockdowns and adverse impact on business activity from COVID-19.

9.59am BST

UK companies also reported that their costs jumped at the fastest rate since August 2008, Markit adds.

Manufacturers blamed shortages of raw materials and high shipping costs -- which have been a global problem amid the surge in commodity prices.

Manufacturers keen to secure raw materials for the coming months were forward buying with greater intensity and contributing to the ongoing poor performance of supply chains as delivery times increased to record-levels.

This in turn compounded the number of shortages and impacted on the costs of goods and raw materials. Manufacturing sector inflation rose to the highest since this index began in January 1992 as 76% of supply chain managers paid more for their goods.

9.43am BST

UK private sector is growing at its fastest pace in at least two decades this month, as the reopening of the economy drove business confidence to a record.

But UK companies are also hiking their prices at a record speed, in response to the surge in commodity costs and other rising prices such as increased salaries

Looser pandemic restrictions and high levels of pent up demand meant that a swift turnaround in labour market conditions continued in May, with private sector employment rising at the quickest pace since June 2014.

However, cost pressures were the strongest for nearly thirteen years. Subsequent efforts to protect margins resulted in the sharpest increase in average prices charged by UK private sector firms since this index began in November 1999.

Survey respondents widely commented on a post-lockdown bounce in business and consumer confidence, alongside higher output levels due to the phased reopening of customer-facing areas of the UK economy.

9.26am BST

Business growth across the eurozone has surged this month, with new orders rising at the fastest pace in almost 15 years.

With vaccinations speeding up, and economies unlocking, service sector firms have reported the fastest jump in activity in almost three years in May.

Eurozone business activity grew at a sharply faster rate in May as economies continued to open up from virus restrictions. The rate of expansion hit the highest for over three years as new order inflows surged to an extent not seen for almost 15 years.

Business optimism about the year ahead continued to break new highs, but price gauges rose further - hitting all-time highs in manufacturing - as demand continued to outstrip supply for many goods and services.

The #eurozone saw a revival in demand during May, as flash numbers signalled the quickest rise in new business for 15 years. Headline output index at 39-month high of 56.9 (April: 53.8), while business optimism also hit a new record. Read more: https://t.co/ULbfK2Mo3T pic.twitter.com/VAgZr2OsRI

Inventories of finished goods stock fell at a rate not seen since 2009 as firms increasingly met demand from existing stock

The inability of factories to produce sufficient output to meet orders was in part due to a new record lengthening of input delivery times as supply chains continued to deteriorate.

However, it was in the rest of the region where the strongest increase in business activity was recorded in May, with growth outside of France and Germany hitting the fastest since the start of 2018 thanks to a record jump in manufacturing output and the largest increase in service sector activity since February 2018

Best news from May PMIs: "growth outside of France and Germany hit the fastest since the start of 2018 thanks to a record jump in manufacturing output and the largest increase in service sector activity since February 2018."

German services already celebrate the reopening of the economy. PMI Services surges to highest level since last summer. #Germany #PostLockdownParty

9.08am BST

Takeover news: rubbish collector Biffa is gobbling up one of its UK rivals as it tries to tighten its grip on the waste management sector.

The addition of Viridor's 85m collections revenues builds on the Group's strong track record as the leading market consolidator in the highly fragmented I&C collections market. In addition, the acquired recycling and treatment assets broadens our coverage and control of materials, strengthening Biffa's position as one of the largest recyclers of post-consumer materials in UK.

When combined with the other investments we have made over the past year across waste reduction, recycling and energy recovery, we have positioned the Group as a leading enabler of the UK circular economy, ready to tackle the UK's waste challenge. "

Love that Biffa refers to rubbish as "post consumer materials"

We can confirm the agreement to sell our Collections business and certain Recycling assets to Biffa, enabling us to focus on our market-leading Energy Recovery and Polymers businesses. Find out more here https://t.co/4xlBr2d3zP pic.twitter.com/q9HMf1DsXJ

8.47am BST

Here's more reaction to the retail sales surge; first economist Julian Jessop, who sees a strong economic recovery:

More evidence of a strong economic recovery this morning - this time from the UK consumer sector

retail sales jumped 9.2% m/m in April (twice as much as the markets had expected)

Gfk measure of consumer confidence rose another 6 points in May (also better than expected)

Robust #retail sales volume growth of 9.2% month-on-month in April helped by non-essential retailers opening up on 12th April bodes well for second quarter #UK #growth & fuels belief #consumers well placed to play leading role in recovery https://t.co/X7QSqfusS5

Earlier, the UK GfK Consumer Confidence Index jumped to -9.00 in May, which is significant in it was the level prevailing in March last year before confidence collapsed on the arrival of COVID.

Reinforcing this good news is the Retail Sales data just released - the overall surge in retail sales of 9.2% m/m in April is over double market expectations underlining once again the difficulty in forecasting economic data through this unprecedented time

8.31am BST

Britain's rocketing retail sales" are firing up the recovery, explains Paul Dales of Capital Economics:

The surge in retail sales volumes in April shows that households flooded back to the shops" once they reopened in the middle of the month, he says, and could mean the recovery will be faster than thought.

The 9.2% m/m leap in retail sales volumes in April was twice as big as the consensus forecast of 4.5% m/m and a bit stronger than our own forecast of 7.5% m/m. It was clearly driven by the reopening of non-essential shops after they had been closed since the third lockdown began in early January.

The astonishing 69.4% m/m surge in clothing and footwear sales showed that households were particularly keen to update their wardrobes!

8.21am BST

Helen Dickinson, chief executive of the British Retail Consortium, says April's easing of coronavirus restrictions gave a welcome boost for thousands of retailers in England and Wales".

Pent-up demand built up during lockdown continues to be released as the reopening of non-essential' retail offered the public a welcomed opportunity to visit many of their favourite shops. Improved weather during April meant greater sales of fashion, particularly in outerwear and knitwear, as the public renewed their wardrobe and made plans to meet friends and family outdoors.

Online sales also continued to perform strongly, rewarding those retailers who had invested in their online and delivery operations during the pandemic.

Footfall is still down by 40% on the pre-pandemic period, and there are still 530,000 people who work in retail still on furlough. The end of the full business rates relief in England poses a significant threat to retailers who have spent well over a billion pounds on Covid-secure measures aimed at protecting staff and customers.

The Government must deliver on its promise to reform the broken business rates system in their ongoing review. By doing so, the industry will be able to make essential investment in improving their digital offering and breathing new life into our high streets and town centres."

8.18am BST

Britain's clothing stores needed the reopening sale boost.

As this chart shows, they've been hit harder than other non-food retailers (such as department stores and household goods vendors) by lockdown restrictions, and weaker demand for new clothes.

'Retailers were in dire need of a spring sales boost after a long dark winter of lockdowns and the grand reopening delivered just that.

Shoppers indulged in a major dose of retail therapy, after being banned from browsing the racks for months. The prospect of being able to go out-out once more and frequent bars and restaurants, saw consumers splashing the cash on the latest fashions. Sales volumes soared in April by 70% in clothing stores, with many queuing around the block to get into their favourite retailers.

7.53am BST

April's retail sales surge is twice as fast as expected - which could indicate that consumers will spend heavily as the lockdown eases.

Economists had only forecast retail sales to rise around 4.5% during the month, as restrictions were lifted.

The volume of goods sold in shops and online climbed 9.2% from March, the Office for National Statistics said Friday. That's more than double the pace anticipated by economists. Sales rose a record 42.4% from April 2020 -- the first full month of the original coronavirus lockdown.

The figures add to evidence of pent-up demand to splurge savings that accumulated while the pandemic closed vast parts of the economy. With remaining restrictions set be removed on June 21, the Bank of England expects the biggest surge in household spending since 1988 -- when Margaret Thatcher was prime minister.

UK retail sales jump more than expected as shops reopen https://t.co/TpthnZEqh6 via @_DavidGoodman @lizzzburden pic.twitter.com/OQzuWf4PPL

7.48am BST

Sales at British food stores, such as supermarkets, dipped in April -- as some people took the chance to eat (outdoors) at restaurants and bars again.

Clothing sales at food stores also fell, as shoppers returned to specialist clothing outlets as they reopened their doors.

Feedback from retailers suggested that sales were negatively affected in April by both the re-opening of all retail sectors and the relaxation of hospitality restrictions.

Food store sales declined by 0.9% in April 2021 following three consecutive months of growth.

Despite the fall they remain considerably higher than their pre-pandemic level, with sales in April 2021 8.6% higher than in April 2019 https://t.co/w381OfQbTY pic.twitter.com/cZfkpknZ0Z

7.38am BST

Retail sales grew sharply' in April, to over 10% above their levels just before the first lockdown, says Jonathan Athow, the UK's deputy national statistician.

Commenting on today's figures, Deputy National Statistician for Economic Statistics @jathers_ONS said: (1/3) pic.twitter.com/K4AZBjFMXg

@jathers_ONS continued: (2/3) pic.twitter.com/FpGak1VcrT

@jathers_ONS added: (3/3) pic.twitter.com/ha5VDYNq5N

7.23am BST

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

The reopening of non-essential stores last month has led to a surge in retail spending, as UK consumers grow more confident about the recovery from the pandemic.

UK retail sales rose 37.7% YoY in April, by far the biggest increase on record. Obviously because of base effects, but the level of UK retail sales is now firmly higher than the pre-#Covid level. #stimulus. pic.twitter.com/T5BqcjpSjD

Our latest data show that retail sales increased by an estimated 9.2% in April 2021 compared with March 2021 https://t.co/bEdv1zRsd2 pic.twitter.com/BRdihEdrbX

The value and volume of sales were both up 9.2% when compared with March 2021 reflecting the impact of the re-opening of all non-essential retail stores in April.

This signalled continued recovery in the retail sector following the growth in March (5.1%) and February (1.8%). The strongest monthly growth in April 2021 came from clothing stores, other non-food stores and automotive fuel retailers of 69.4%, 25.3% and 10.6% respectively.

All retail sectors reported a fall in their proportions of online sales this month.

The total proportion of sales online decreased to 30.0% in April 2021, down from 34.7% in March 2021 https://t.co/Mqatej2KFO pic.twitter.com/VDg7kzXmoW

The financial mood of the nation has bounced back to its pre-lockdown figure of minus 9 this month, meaning confidence has made up all the ground lost to COVID-19".

UnitedKingdom Gfk Consumer Confidence at -9 https://t.co/SBOGqml0ti pic.twitter.com/JSg1ryEp2R

Aust composite PMI for May -0.8pts to a still very strong 58.1, with manufacturing up and services down. Employment component rose to its strongest on record.
Japan composite business conditions PMI for May -2.9pts to 48.1 with latest covid state of emergency not helping. pic.twitter.com/Le99kzwfKn

The growing positive news around the Vienna talks have the market girding for a resumption of Iranian oil exports. Others have pointed to the apparent turn in the Baltic Dry Index this month, suggesting that global logistics bottlenecks may be easing.

All this has also been happening amid the backdrop of Chinese policy tightening.

U.S. stocks rose on Thursday, rebounding from three straight days of losses as technology shares staged a comeback.
The Dow rose 0.55%.
The S&P 500 was up 1.06%.
The Nasdaq surged 1.77%. https://t.co/boFUHCte5I pic.twitter.com/EST9n2K1Bo

Source	RSS or Atom Feed
Feed Location	http://feeds.theguardian.com/theguardian/business/economics/rss
Feed Title
Feed Link	http://feeds.theguardian.com/