Source From Bloomberg
Original News HERE
What’s happening? U.K. trade continued its recovery in June, and travelers stocked up on alcohol and tobacco, taking advantage of post-Brexit duty-free shopping.
Six months into their new trading relationship, U.K. exports to the European Union continued to recover in June, and are back at pre-pandemic levels. Compared with a year ago, all British trade flows recorded double-digit growth, with exports to the bloc rising 29%, according to data published Thursday.
Trade feeds into the overall picture for U.K. economic growth, which was higher than expected in June as lighter coronavirus restrictions led to renewed strength in the dominant service sector. Gross domestic product rose 1%, making growth for the second quarter 4.8%, close to the 5% pace the Bank of England predicted last week.
Meanwhile, lobby groups slammed the U.K. government’s decision to extend until October what was meant to be only a month-long relaxation of EU truckers’ hours. The measure was designed to alleviate Britain’s post-Brexit driver shortage, but the Road Haulage Association said the perception of poorer conditions for workers would actually exacerbate recruitment issues, with knock-on effects for supply chains.
U.K. travelers brave enough to navigate the country’s “traffic light” system on quarantine requirements for trips to the EU stocked up on booze and cigarettes, taking advantage of post-Brexit tax-exempt shopping. Dufry, Europe’s largest duty-free operator, said it had seen gains of 50% to 100% in sales of liquor and tobacco in recent days.
Finally, there’s growing concern among business leaders that Prime Minister Boris Johnson is neglecting London just when it needs help most. They warn that there’s a danger that the capital turns into collateral damage from the mantra to focus on the provincial regions that backed leaving the EU and cemented the Conservative Party’s power.
