Weekly Market Update 06/09/2024
UK retail sales grew at an annual rate of 1% in August according to the data released by the British Retail Consortium on Tuesday. This is up from 0.5% in the previous month, and higher than the three-month average of 0.4%. The growth could be attributed to the warm weather, encouraging consumers to spend more on barbeque food and summer clothing.
Official data will be released at the end of the month, but these early indicators show promise for the UK economy in the second half of the year, as Britain’s output expansion fell behind that of all other G7 countries in the first half.
On a drive to simplify ISA rules, this week it was announced that in consultation with the new Labour government, HMRC would drop the ban on investors holding fractional shares within their ISAs, possibly as early as 30th September. The news has been welcomed as it makes expensive companies more accessible to less wealthy investors, enabling them to diversify their portfolios. It has also been revealed that the government has dropped plans for the “British ISA”, over concerns it would complicate the investment market, as previously expressed by several investment platforms. The British ISA would allow investors to add an extra £5,000 to their ISA, on top of the current £20,000, for investment in UK equities.
Andrea Wood, Chartered MCSI
Investment Manager
