Two of America’s largest carmakers are braced for further disruption after the United Auto Workers (UAW) union announced further strikes over pay.
The trade union has widened industrial action to include all 38 parts and distribution centres operated by General Motors and Chrysler-owner Stellantis in the US.
It also previously targeted Ford, but the manufacturer has since met some of UAW’s demands.
UAW has demanded that the carmakers increase salaries and guarantee better rights for workers making electric vehicles.
Shawn Fain, president of UAW, said that General Motors and Stellantis have rejected proposals.
He said: “Stellantis and GM are going to need serious pushing.”
It comes after Detroit’s big three carmakers - Ford, General Motors and Stellantis - were hit by simultaneous strikes last week for the first time in history.
Nearly 13,000 workers across Ohio, Michigan and Missouri walked out last Friday.
The walkout has hit production across a number of models, including the Jeep Wrangler and Ford Bronco SUV.
The so-called “Detroit Three” are among carmakers shifting from petrol and diesel-burning cars to electric, a process costing billions of pounds.
They are also braced for an influx of cheaper electric models from China, which could pose trouble for US and European carmakers alike.
UAW said that it has made progress in negotiations with Ford, which has now agreed to provide workers with cost-of-living payments and additional job security in the event of layoffs.
Read the latest updates below.
06:19 PM BST
Have a great weekend!
That’s all from us this week. Before I go, here are some snaps of shoppers across the world queuing up to get their hands on the new iPhone 15 which came out today.
If you’re still unsure whether to buy Apple’s latest device, technology editor James Titcomb has you covered...
Astonished that queuing for an iPhone on launch day is still a thing… Over 30 minute wait at the flagship store in London today. Pro models flying out the door. Cost of living crisis?? Wow! pic.twitter.com/rtO8lcE8ZP
— Ben Wood (@benwood) September 22, 2023
— The Nation Nigeria (@TheNationNews) September 22, 2023
VIDEO | Long queues at Apple BKC in Mumbai's Bandra Kurla Complex as much-awaited iPhone 15 series goes on sale in India and other countries from today. pic.twitter.com/vXh4y2JCPU
— Press Trust of India (@PTI_News) September 22, 2023
05:59 PM BST
Climate change could spark beer shortage, warns Asahi
Asahi has warned climate change could lead to beer shortages as higher temperatures damage hop and barley crops.
Senior business reporter Daniel Woolfson reports...
The Japanese brewer said French spring barley harvests could yield as much as 18pc less by 2050 if global temperatures rise by 4 degrees, which is one scenario being modelled by the UN.
Poland’s harvest would drop by 15pc and the quality of hops, which are crucial for flavouring and preserving beers, could degrade by as much as 15pc in the Czech Republic, a key growing market.
Even with a less severe temperature increase of 2 degrees, some barley and hop harvests could suffer double digits percentage declines in yields, Asahi’s report predicts. The UN has said that the world is currently on course for a rise in temperature of as much as 2.6 degrees by the end of this century.
Asahi’s chief executive, Atsushi Katsuki, told The Financial Times: “Although with hotter weather the consumption of beer may grow and become an opportunity for us, climate change will have a serious impact.
“There is a risk that we may not be able to produce enough beer.”
Asahi is one of the world’s biggest brewers. As well as its namesake beer, it sells Peroni and Grolsch in the UK.
Scientists at the University of East Anglia have previously warned that droughts and high temperatures caused by climate change threatened the world’s beer supplies.
The barley used in brewing beer requires between 15 to 17 inches of water to complete its growth cycle, and some hops require four times that amount. Around 17pc of the world’s barley is used for beer production per year.
Multinational beer companies such as Budweiser-owner AB InBev and Carlsberg have been investing in new technology and farming practices that they hope will help protect barley supplies in the coming decades. For instance, AB InBev has been experimenting with drought-resistant barley.
British brewers say rising temperatures are already having an impact on hop growing areas in the UK.
Felix James, co-founder of South London-based brewery Small Beer Co, said: “In last summer’s heat, the hops in Kent were barely surviving.”
05:19 PM BST
BT chief and former ITV boss approached for BBC chairman role
The departing chief executive of BT and former boss of ITV have been approached for the BBC chairman role as the Government tries to plug the gap at the top of the public service broadcaster.
Senior business reporter James Warrington has more:
Philip Jansen, who is due to step down from the telecoms giant in the coming months, has been contacted by headhunters for the top job.
The Telegraph has learnt Sir Peter Bazalgette, a veteran media executive who was chairman of ITV until last year, has also been contacted about the role, as has Mr Jansen’s predecessor at BT, Gavin Patterson.
Mr Jansen, whose involvement was first reported by The Times, announced in July he would step down from BT at an “appropriate moment” over the next 12 months.
But sources close to the telecoms boss suggested he was unlikely to take the job and was planning to take a break after leaving BT.
04:55 PM BST
FTSE 100 closes in the green despite interest rate concerns
The FTSE 100 has managed to pull itself into the green despite concerns the Bank of England will keep interest rates higher for longer.
The blue-chip index finished 5 points or 0.07pc higher at 7,683.91. However, the FTSE 100 has shed 0.36pc this week.
The FTSE 250 index closed 0.17pc lower at 18,606.84.
04:40 PM BST
Wilko to close remaining stores within weeks
Wilko’s remaining 111 stores across the UK will close early next month, weeks after a last-ditch rescue deal collapsed.
The troubled retailer’s will shut its remaining stores on Sunday 8 October as part of the final phase of closures, administrators for PwC said.
The hardware and furnishings retailer tumbled into administration last month after it came under pressure from weak consumer spending and debts to suppliers.
04:27 PM BST
More interest rate hikes needed, says Federal Reserve official
Further US interest rates hikes will be needed to bring down inflation, according to a Federal Reserve official.
Michell Bowman, a member of the Federal Reserve’s board of governors, shared her hawkish views just days after the US central bank held its borrowing costs at between 5.25pc to 5.5pc.
Speaking at the Independent Community Bankers of Colorado, she said:
Given the mixed data releases—strong spending data but a decline in inflation and downward revisions to jobs created in previous months—I supported the FOMC’s [Federal Open Market Committee] decision to maintain the target range for the federal funds rate.
But I continue to expect that further rate hikes will likely be needed to return inflation to 2pc in a timely way.
Ms Bowman pointed to recent economic predictions which signalled that inflation could remain above 2pc until the end of 2025.
This, along with my own expectation that progress on inflation is likely to be slow given the current level of monetary policy restraint, suggests that further policy tightening will be needed to bring inflation down in a sustainable and timely manner.
04:06 PM BST
Recession warning as employers cut staff at fastest pace since 2009
Britain’s businesses are braced for a recession as employment fell at its fastest rate since the financial crisis.
Deputy economics editor Tim Wallace reports:
Job numbers dropped sharply this month, according to the Purchasing Managers’ Index, an influential survey of companies from S&P Global, as businesses struggle with higher borrowing costs and weakening demand.
The Bank of England received the survey results early, and policymakers indicated the gloomy results had contributed to their decision to keep interest rates unchanged on Thursday.
The minutes of the Monetary Policy Committee’s crucial meeting show officials considered “underlying growth in the second half of 2023 was also likely to be weaker than had been expected.”
Chris Williamson, chief business economist at S&P Global, said the survey indicated the “sharpest fall in employment since 2009”, aside from the pandemic.
“A recession is looking increasingly likely in the UK. The steep fall in output signalled by the flash PMI data is consistent with GDP contracting at a quarterly rate of over 0.4pc, with a broad-based downturn gathering momentum to hint at few hopes of any imminent improvement,” he said.
“Underscoring the severity of the UK’s deteriorating situation, September’s downturn is the steepest since the height of the global financial crisis in early 2009 barring only the pandemic lockdown months.”
The PMI fell to 46.8 in September, down from 48.6 in August. Any score of below 50 indicates the economy is contracting. Both the manufacturing and services sectors are shrinking, the survey showed.
03:59 PM BST
UAW has said it will shut down US parts and distribution centres operated by General Motors and Chrysler-owner Stellantis until the manufacturers “come to their senses”.
Handing you over to my colleague Adam Mawardi who will keep you updated into the evening.
Auto workers at 38 @UAW @GM and @Stellantis plants are being called on to strike due to the lack of progress at the bargaining table.
"We will shut down parts distribution until those 2 companies come to their senses." pic.twitter.com/mDwWNeTxEL
— AFL-CIO ✊ (@AFLCIO) September 22, 2023
03:30 PM BST
US auto strikes to expand
Two of America’s largest carmakers are braced for further disruption as the United Auto Workers (UAW) union announces further strikes over pay.
The trade union has announced further industrial action targeting at least distribution centres operated by General Motors and Chrysler-owner Stellantis in Michigan.
UAW has demanded that the carmakers increase salaries and guarantee better rights for workers making electric vehicles.
Shawn Fain, president of UAW, said that General Motors and Stellantis have rejected proposals to share profits.
02:55 PM BST
Superdrug to stop selling single use vapes
Superdrug will stop selling single-use vapes as a backlash grows against the environmental impact of the millions of vapes being thrown out by Britons each week.
The high street store will stop selling brands such as Vuse Go and Flavaah Bars. It plans to completely clear its stock by the end of the year.
Superdrug also warned over the risk of fires caused by the lithium batteries in disposable vapes as a reason to halt sales.
The Telegraph’s Ben Riley-Smith revealed earlier this month that ministers were considering a ban on single-use vapes amid fears children are becoming addicted the colourful, flavoured alternatives to cigarettes.
Lucy Morton-Channon, Superdrug’s head of environment, social and governance, said: “The rate that consumers are using single-use vapes and discarding them is worrying and alarming for the environment.
“The lasting effects that single-use vapes are having on the environment needs to be addressed, and I am pleased that we’ve decided to remove them from all stores.”
Ghada Beal, Superdrug’s healthcare director, said: “We need to be responsible about the growing trend in disposable vapes among young people, and the lasting effect on the environment.
“We have a wide range of products at Superdrug to help those wanting to quit smoking, so head into a Superdrug store to learn about your different options or speak to one of our friendly pharmacy team members who would be happy to advise on the best option for you.”
02:26 PM BST
Manufacturing output falls in three months to September, says CBI
New data from the Confederation of British Industry suggests manufacturing output fell in the three months to September.
“Total and export order books were reported as below ‘normal’ in September, and weaker than their (respective) long-run averages,” the CBI said.
The latest CBI Industrial Trends Survey found that manufacturing output volumes fell in the three months to September. Firms expect output to be unchanged over the next three months #ITS pic.twitter.com/6AKy4KBjXy
— CBI Economics (@CBI_Economics) September 22, 2023
01:55 PM BST
Markets: Ocado and Ascential lead FTSE recovery
Shares in Ocado climbed 5pc on Friday after a negative analyst report wiped 20pc from its stock earlier this week. Ocado’s share price suffered its worst drop in 11 years on Thursday after it was downgraded by a City broker.
Elsewhere in the FTSE 100 Lloyds Banking Group was up 3.3pc while The Trainline was also up 3pc. The FTSE 100 was up around 0.6pc as of 2pm.
In the FTSE 250, media group Ascential posted early gains on the back of a successful Cannes Lions festival. Its shares were up 6pc. Meanwhile, the top faller in the wider index was power group Drax, down 4pc.
01:48 PM BST
London Fashion Week boosts City footfall
London Fashion Week bolstered foot traffic in the centre of London, with footfall up 17.8pc on one day during the festival.
According to data from analytics group MRI Springboard, first reported by the Evening Standard, footfall in central London rose by 7.3pc during the week compared to the previous week.
Saturday enjoyed the biggest increase, with footfall up 17.8pc.
01:11 PM BST
UK could 'dodge' recession, economist says
Britain should still “dodge” a recession despite dismal business output, one economist has said, as lower levels of inflation provide a boost to the country’s economic prospects.
Julian Jessop, an economics fellow with the IEA, said: “Lower inflation and improving financial conditions should mean the UK dodges a recession, but a significant minority of households will still struggle with higher mortgage and/or energy bills this winder”.
He added that “for the first time in a long while, the UK PMI (46.8) was lower than the euro area (47.1), perhaps reflecting the boost to Spain, Greece and Italy from the rebound in tourism.
“But Brexit Britain is still doing less badly than Germany (46.2) and France (just 43.5).
Weak UK #PMI: output index fell to 46.8 in September (August 48.6) 🙁
(Lower #inflation and improving financial conditions should mean the UK dodges a #recession, but a significant minority of households will still struggle with higher #mortgage and/or #energy bills this winter) pic.twitter.com/Ci97jLWg8c
— Julian Jessop (@julianHjessop) September 22, 2023
12:58 PM BST
German house prices plunge 10pc
German house prices have fallen almost 10pc in a year, as rising interest rates and an economic slowdown hit property sales, Tim Wallace reports:
The Federal Statistical Office said average prices in the three months to June were 9.9pc below where they were during the same period of 2022 when prices were peaking after a post-pandemic surge in activity.
The slump was the biggest annual drop in property prices since records began in 2000. It represents a rapid reversal for prices, which surged after lockdowns.
At the peak of the boom in 2021, prices were up by almost 13pc on the year, according to the Federal Statistical Office. The slump has been triggered by a steep increase in interest rates.
Read the full story here: German house prices plunge by 10pc in record drop
12:32 PM BST
iPhone 15 Pro orders delayed
Orders of the most expensive iPhone 15 models are experiencing delays into mid November amid what looks like strong demand for Apple’s premium smartphone models.
Dan Ives, an analyst at Wedbush Securities, said orders were currently on track to be “much stronger” than expected, and up more than 10pc on demand for the iPhone 14.
iPhone 15 pre-orders are still tracking much stronger than we and the Street originally expected and up roughly 10pc - 12pc from iPhone 14 based on our analysis. The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe. This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle with our expectation of an ASP in the $925 range and up roughly $100 over the last 12-15 months given heavy Pro mix model shifts.
Delivery/shipment times have moved to late October to mid November (Nov 13th) for various models of iPhone 15 Pro/Pro Max with the iPhone 15 going on sale officially in stores today. iPhone 15 Max looks like a clear standout on this cycle.
11:59 AM BST
Toshiba invests £20m in UK quantum computing
Japanese technology giant Toshiba has opened a new quantum technology hub in Cambridge as part of a £20m investment in the technology.
The new Quantum Technology Centre will create 30 local jobs in the high-tech industry. The facilities will aim to commercialise technologies in quantum security and manufacture products for “quantum key distribution”, a means of sending messages secured with quantum encryption.
Shunsuke Okada, Toshiba’s chief digital officer, said: “Following more than 30 years of groundbreaking work in the UK, we are delighted to be opening the Quantum Technology Centre in Cambridge as our next step in further developing and commercialising quantum-secure communications technologies.”
11:23 AM BST
Liz Truss blasts to Labour's OBR plans
Former Prime Minister Liz Truss has responded to Labour’s plans announced this morning to subject all major fiscal changes to a review by the Office for Budget Responsibility (OBR). Labour has put forward the plans a year on from Ms Truss’s mini-budget announcement.
The 25-year economic consensus has led to state spending being higher than it’s been for around 50 years, taxes at their highest since WW2 and a debt of over £2.5 trillion. This has caused low economic growth.
It beggars belief that Labour think Britain’s problems will be solved by bigger government and even more powers for quangos.
Hard-working people and businesses - freed from overbearing regulation, tax, and debt - are going to get Britain growing again, not more bureaucrats in London.
11:05 AM BST
Amazon to insert advertising into Prime video
Amazon will begin showing adverts on its Prime Video app starting early next year as the e-commerce giant seeks to boost revenues from its streaming service.
The tech giant said it aimed to show “meaningfully fewer ads than linear TV and other streaming TV providers”. The move follows a decision by Netflix to introduce a cheaper, advertising-supported tier of its video service. Disney is also adding advertising to its app.
The tech giant said it would offer an advertising free option if customers are willing to pay an extra $2.99 per month. Currently, only Amazon’s live streaming sports option includes advertising.
10:15 AM BST
Economic indicators at levels "last seen a decade ago"
The Bank of England had sight of the S&P’s latest figures on Britain’s economy, amid “worrying signals” that a recession is imminent after multiple interest rate hikes.
John Glen, chief economist at the Chartered Institute for Procurement and Supply, said:
Policymakers are likely to feel concerned at this month’s figures which echoed survey records seen in the last economic crash over a decade ago.
Private sector businesses reported that output fell at the sharpest rate since March 2009, outside the lockdown years and inevitably job creation followed suit as headcounts reduced at the fastest level since October 2009.
Manufacturers experienced a rapid fall in pipelines of work as their backlogs shrunk at the fastest pace since February 2009.
Businesses felt the impact of subdued market conditions and interest rate hikes and businesses reined back costs and capacity to stay afloat. Salary and fuel costs remained the main drivers of inflation even with a slight improvement in the rate of input cost rises which fell back to January 2021 figures.
09:50 AM BST
UK business activity shrinks fuelling recession fears
British business output fell at its fastest pace since the financial crisis, excluding the impact of Covid lockdowns, according to a closely-watched business survey.
Meanwhile, private sector employment numbers fell sharply, ending a five-month period of growth. The rate of job losses is now at its fastest pace since October 2009.
The S&P’s UK Flash PMI survey fell to 46.8 in September, down from 48.6 in August, the sharpest drop in private sector activity since March 2009.
The @SPGlobal @cipsnews #UK Flash #PMI fell to 46.8 in September (Aug: 48.6) to signal the sharpest contraction in private sector activity since the financial crisis when excluding lockdown-hit months: https://t.co/0gOgNWh3xF
Find out about the PMIs: https://t.co/9s02gyxV9S pic.twitter.com/5u6y30K86L
— S&P Global PMI™ (@SPGlobalPMI) September 22, 2023
The ratings agency said: “Aside from pandemic disruptions, the latest drop in private sector business activity was the steepest since March 2009.
“Weaker demand due to cost-of-living pressures and higher borrowing costs were cited by survey respondents, alongside cutbacks to spending among clients in the real estate and construction sectors.
“Some manufacturers suggested that customer destocking had acted as a brake on their output requirements.”
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the slowdown in output suggested a recession was increasingly likely for Britain.
The disappointing PMI survey results for September mean a recession is looking increasingly likely in the UK. The steep fall in output signalled by the flash PMI data is consistent with GDP contracting at a quarterly rate of over 0.4pc, with a broad-based downturn gathering momentum to hint at few hopes of any imminent improvement.
Underscoring the severity of the UK’s deteriorating situation, September’s downturn is the steepest since the height of the global financial crisis in early 2009 barring only the pandemic lockdown months.
The survey had warned that a revival of growth in the second quarter looked unsustainable, and the third quarter is indeed seeing a mounting toll on the economy from the reality of the increased cost of living and the recent rapid rise in interest rates.
A major concern in the inflation outlook has been wage growth, but with the survey now signalling the sharpest fall in employment since 2009, wage bargaining power is being eroded rapidly.
09:41 AM BST
Apple Store workers strike as iPhone 15 launches
French Apple Store workers have walked out of the tech giant’s shops on its most important day of sales this year.
Workers demonstrated outside the Apple Store in Paris in a dispute over pay.
The launch of a new iPhone would normally be a cause for celebration but this time we’re not in the mood,” Albin Voulfow, of the CFDT union, told the AFP.
Workers from around 20 Apple Stores will take part in the walk out, according to organisers.
Union officials have asked for a 7pc pay rise to keep up with inflation. Apple has offered 4.5pc, according to Bloomberg.
In a post on X, union officials said: “We will therefore remind management that it is not this movement that harms the company, but rather their denial in the face of the suffering of its employees.”
09:18 AM BST
Microsoft president says Activision deal could close by October 17
We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18…
— Brad Smith (@BradSmi) September 22, 2023
09:11 AM BST
Labour promises to submit all spending plans to OBR
The Shadow Chancellor Rachel Reeves has promised to disclose all spending and tax plans to the government’s financial watchdog after former Prime Minister Liz Truss’s “mini-budget” sent shockwaves through financial markets.
A Labour government would create a new law that all major government spending plans should be reviewed by the Office for Budget Responsibility, Ms Reeves said.
Writing in the Financial Times, Ms Reeves said: “We will guarantee in law that any government making significant, permanent tax and spending changes will be subject to an independent forecast of its impact from the OBR.
“In the event of an emergency where budgetary changes must be introduced at speed and a forecast cannot be produced in time, the OBR would be allowed to set a date for when it can publish its forecast.
“And we will provide much more certainty to businesses by committing to holding a single Autumn budget every year by the end of November, giving companies and families four months to plan for the new tax year.”
The Labour Party has been trying to cement its lead in the polls by demonstrating it will provide a steady hand over the economy after months of turmoil under the Conservatives.
08:53 AM BST
Shoppers queue for Apple's iPhone 15 on launch day
Long queues for Apple’s iPhone 15 and iPhone 15 Pro were on display at shops around the world as technology fans tried to be among the first to get hold of the new smartphones.
Apple’s flagship shops in Beijing and Hong Kong had lengthy waits as shoppers in China tried to grab the new phones amid concerns some of its more expensive models would be in short supply.
The Telegraph’s technology editor James Titcomb has a full review of the iPhone 15
08:26 AM BST
FTSE 100 opens down, pound at six month low
The FTSE 100 has opened down slightly, losing a quarter of a percentage point in early trading before recovering some of its losses.
The pound is now trading at a six month low to the dollar following yesterday’s interest rate decision from the Bank of England.
One pound is now worth $1.23, a level last seen in March.
08:22 AM BST
Gas strikes called off in Australia
An Australian union has cancelled strikes at two of Chevron’s major liquified natural gas projects, potentially easing pressure on rocketing gas prices.
Unions at Chevron’s Gorgon and Wheatstone natural gas plants accepted a deal on pay and conditions from an arbitration committee, ending strikes that began two weeks ago, Reuters reported.
A spokesman for the Offshore Alliance union said: “The Offshore Alliance will now work with Chevron to finalise the drafting of the agreement and members will soon cease current industrial action.”
The tentative agreement ends a battle over wages that has lasted weeks and sent liquid natural gas prices up 35pc last month. European gas prices dropped as much as 6pc on Friday morning as news that the strikes would be called off emerged.
07:45 AM BST
CMA says concerns over Microsoft's Activision deal are settled
Britain’s competition watchdog has said it is satisfied Microsoft’s restructured $69bn takeover of gaming company Activision has opened the door to clearing the deal.
The Competition and Markets Authority said the “restructured deal makes important changes that substantially address” the regulators concerns about the original takeover.
Microsoft will spin off cloud streaming rights Activision’s video games to Ubisoft, which will be free to offer the games to consumers or rival video game companies.
The changes should remove a final block on the massive technology takeover, and end the long-running investigation into the deal.
Colin Raftery, senior director of mergers at the CMA, said:
This is a new and substantially different deal, which keeps the cloud distribution of these important games in the hands of a strong independent supplier, Ubisoft, rather than under the control of Microsoft.
With additional protections to make sure that the deal is properly implemented, this will maintain the structure of the market, enabling open competition to continue to shape the development of cloud gaming in the years to come, and giving UK gamers the opportunity to access Activision’s games in many different ways, including through cloud-based multigame subscription services.
07:36 AM BST
Battered consumer confidence begins to improve
Soaring interest rates, the war in Ukraine and food price inflation have all hammered consumer confidence over the past two years - but could a glimmer of optimism be returning?
New data from GfK suggests improving wages have helped inch up consumer confidence this month to -21, still negative, but its highest level since January 2022.
Joe Staton, client strategy director at GfK, said:
The view on our personal financial situation for the past year and the next is registering marginal but welcome growth, while expectations for the UK’s wider economy in the coming year show a more robust six-point increase.
And with less than 100 shopping days to Christmas, the four-point boost to the major purchase measure might offer some hope to retailers, who know all too well that many people face financial pressure in the run-up to this year’s festive season.
While this month’s improved headline score is good news, it’s important to note many households are still struggling with the cost-of-living crisis and that economic conditions are tough. The reality is that consumer confidence remains suppressed, and the financial mood of the nation is still negative.
07:34 AM BST
Retail sales recover 0.4pc in August
Retail sales recovered in August, although a jump in prices at the pump meant the recovery was more muted than expected, Melissa Lawford reports.
A jump in petrol costs meant shop sales recovered by less than expected in August, official data shows.
The number of retail sales climbed by 0.4pc in August, up from a revised 1.1pc drop in July but below the consensus expectation of 0.5pc growth, according to data from the Office for National Statistics (ONS).
A sharp jump in petrol and diesel prices was key, with the number of car fuel transactions slumping by 1.2pc month-on-month.
ONS senior statistician Heather Bovill said: “Retail recovered a little from the large fall seen in July, driven by a partial bounce back in food and a strong month for clothing, though sales overall remain subdued.
She added: “These were partially offset by internet sales, which dropped slightly as some people returned to shopping in person following a very wet July. Fuel sales also fell, with increased prices hitting demand.”
07:10 AM BST
Retail sales have rebounded in August after a wet July put a damper on the high street. Elsewhere, the Competition and Markets Authority has completed an initial review of Microsoft’s $69bn takeover of Activision. Meanwhile, eyes are on gas prices after Chevron workers agreed to halt strikes at plants in Australia. Here is everything else you need to know this morning:
5 things to start your day
1) The moments that made Rupert Murdoch | The succession of newspapers – and wives – that defined the media mogul
2) Wall Street chief dragged into court battle over Mike Ashley’s trades | Retail tycoon pursues case against investment bank over bets on Hugo Boss stock
3) 10,000 fewer heat pump grants available to households after Rishi Sunak’s net zero overhaul | While the Prime Minister increased the incentive to £7,500 it has now emerged that the £150m overall cap on the scheme has not been changed
4) Billionaire Mike Bloomberg vows to give financial data empire to charity | Announcement follows speculation around future of US company
5) Warner Bros announces £200m expansion of Watford studio where Barbie was filmed | Originally a World War II airfield, Leavesden’s aircraft hangars have also been used to film James Bond’s Goldeneye and House of the Dragon
What happened overnight
Most stock markets fell on Friday morning as Asian investors fear interest rate rises. The Bank of Japan is set to maintain its negative rates policy as new inflation data released on Friday showed it came in higher than expected in August.
Tokyo, Sydney, Seoul, Singapore, Taipei and Wellington all fell, though Hong Kong and Shanghai enjoyed a much-needed bounce on bargain-buying.
Wall Street stocks fell sharply on Thursday as investor risk appetite was dampened by concerns that interest rates will remain higher for longer.
The Dow Jones Industrial Average finished down 1.1pc at 34,070.42.
The broad-based S&P 500 dropped 1.6pc to 4,330.00, while the tech-rich Nasdaq Composite Index fell 1.8pc to 13,223.98.