6:38 am, September 3, 2024
Fragile consumer confidence sees retail sales rise by 1% on last August
Fragile consumer confidence saw retail sales rise by 1% on the year in August as nervousness grows ahead of next month’s energy bill increase and Labour’s first budget.
The figure was well below last August’s growth of 4.1% and below the 12-month average of 1.2%, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor.
Food sales were up 2.9% year on year over the three months to August, against growth of 8.2% for the same period last year, and non-food sales were down 1.7%. However, Britons are treating themselves to affordable, mood-boosting luxuries, and are feeling more confident in both their household finances (70%) and their ability to live within their means (73%) compared to last month’s 65% and 70% respectively.
UK manufacturing grows at two-year-high as inflation shows signs of easing
The UK’s manufacturing sector grew at its fastest pace for more than two years last month as inflationary pressures for firms and customers showed signs of easing, according to new data,
The closely watched S&P Global UK manufacturing PMI survey recorded a reading of 52.5 for August, up from 52.1 in the previous month. The reading, which was the highest for 26 months, was in line with analysts’ expectations.
Any reading above 50 means a sector is in growth while a score below this means it is contracting.
Goodwood Revival set to become world’s first historic motorsport event conducted with sustainable fuels
The upcoming Goodwood Revival is due to become the first historic motorsport event to race entirely with sustainable fuels.
The Revival, which starts this Friday (September 6) and runs until Sunday, September 8, will incorporate 15 separate races which include cars using entirely sustainably created fuels.
It follows on from the 2023 event which saw Goodwood’s first sustainably-fuelled race – the Fordwater Trophy for Porsche 911s – and the 81st Members’ Meeting in April that hosted two races with fuels that had been sustainably created. However, this year’s Revival marks the first time that all races hosted will include cars that use sustainable fuels in what Goodwood is calling a ‘landmark moment for historic motorsport’.
The markets
UK stock markets have started the month on the back foot, with a spike in Rightmove shares failing to lift the FTSE 100 into positive territory. The index was down 12.79 points, or 0.15%, to close at 8,363.84 on Monday.
It was a slightly stronger session for other top European stock markets. Germany’s Dax edged up 0.09% while France’s Cac 40 closed 0.2% higher. Over in the US, markets were closed for Labour Day.
The pound was up about 0.1% against the US dollar at 1.3145, and down 0.05% against the euro at 1.188.
Councils call for ‘urgent’ £644m injection to stabilise housing accounts
An ‘unprecedented coalition’ of councils has called for an emergency injection of £644m from the government to stabilise their housing accounts and prevent investment in new homes being delayed or cancelled.
After deputy prime minister Angela Rayner promised a ‘council housing revolution’, 100 local authorities have now warned that the financial model for council housing finances is ‘broken’, with a £2.2bn ‘black hole’ in councils’ dedicated budgets expected by 2028.
The local authorities said the previous government did not honour a 10-year deal agreed in 2012 which would have guaranteed rental incomes and costs were predictable. They argue that despite being expected to ‘deliver on their side of the agreement’, policy changes by the government imposed new costs on councils and restricted crucial income.
Chancellor urged to impose pay-per-mile scheme on UK drivers
Chancellor Rachel Reeves is being urged to impose a pay-per-mile scheme on UK drivers to avoid a ‘black hole’ from lost fuel duty revenue.
Public transport charity Campaign for Better Transport (CBT) issued the plea, claiming it would have public support.
It is proposing that drivers of zero emission vehicles (ZEVs), such as electric cars, should be charged based on how far they travel. Under the plan, drivers with a ZEV before the implementation date would be exempt, incentivising the switch to electric motoring.
Monday on Car Dealer
Vertu Motors reports ‘strong’ trading despite new car sales down due to ‘softening’ market
Vertu Motors reported strong trading over the past five months despite a 5.8% drop in new car sales. Group revenues rose 3.3%, with used car sales up 5%. Profit before tax is expected to align with market consensus. Full results are due October 16.
New EU tariffs pose challenges for Chinese BEVs but impact will vary – expert
Proposed EU tariffs on Chinese battery-electric vehicles (19-46.3%) may slow sales, depending on cost absorption by manufacturers, says Cox Automotive. UK market uncertainty persists due to unclear government stance. Some Chinese brands plan EU manufacturing to bypass tariffs and reduce costs.
Ben boss says charity needs more help after staggering 400% rise in demand over recent years
Ben, the automotive charity, faces a 400% rise in demand since 2018, especially for mental health support, and seeks increased industry collaboration and financial backing. Speaking on the Car Dealer Podcast, outgoing CEO Zara Ross emphasised the need for closer partnerships to expand impact.
Used car dealers enjoy strong August as month bucks traditional summer trends
The Porsche Cayman saw the highest retail price rise among used cars in August, with a 2.3% increase. Despite a 5.3% drop in car listings, strong demand led to higher-than-expected retail prices and a 3% rise in transactions compared to last year.
Polestar UK abandons agency sales model as it looks to increase sales
Polestar is shifting from the agency sales model to the non-genuine agency (NGA) model, allowing dealers more pricing control and sharing commissions. The UK, an early adopter, will benefit as Polestar expands its retail presence and launches new electric SUVs.
Weather
Eastern areas will see showery rain today, as will the north-west and Northern Ireland, reports BBC Weather. Central areas and the south-west will stay sunnier; highs of 23 degrees.
Wales and England will see showers tonight with variable cloud, while Scotland will be drier.
