Britain’s retailers saw stronger-than-anticipated sales in July, buoyed by warm summer weather and the momentum from the women’s European football championship, according to official figures released Friday by the Office for National Statistics (ONS).
Retail sales volumes climbed 0.6% from June, exceeding a Reuters consensus forecast of 0.2%. The rise was attributed to heightened consumer demand for seasonal clothing and food. However, the annual rate of growth cooled to 1.1%, falling short of market expectations, after the ONS issued widespread downward revisions to its historical data.
The underlying picture was dampened by a significant adjustment to June’s performance. Originally reported at 0.9% monthly growth, June’s figure was pared back to just 0.3%, reflecting the ONS’s recalibration of seasonal factors, including better alignment with holiday timings and variations in data collection periods.
The pound remained steady in currency markets following the data release.
July’s retail performance comes ahead of next week’s highly anticipated GDP figures for the same month. Economists are bracing for signs of a broader economic cooldown after a surprisingly solid first half, buoyed in large part by robust government spending.
Last month, the British Retail Consortium reported a 2.5% headline increase in member spending in July, as hotter weather drove demand for food and summer clothing. However, when adjusting for price inflation—particularly in food—actual purchase volumes declined, underscoring the persistent headwinds facing British consumers.
