British retail sales rebound but government costs climb                    

Despite rise in retail sales recovery will be slow in Britain after shrinking a record 20% last quarter 

Retail sales rose above pre-pandemic levels in July, the first full month for many shops reopening after lockdown. Picture: Dominic Lipinski/PA Wire

Britain’s economic recovery from the shock of the Covid-19 pandemic has gathered pace, new data showed, but government borrowing rose past the £2 trillion (€2.2trn) mark and fears of future job losses are mounting.

Retail sales rose above pre-pandemic levels in July, the first full month for many shops reopening after lockdown, and August’s Purchasing Managers’ Index (PMI) data showed the fastest growth in almost seven years.