UK retail sales volume experienced a rebound in July, driven by summer discounting and the influence of the European football Championship, which boosted sales in department stores and sports equipment outlets.
According to the Office for National Statistics (ONS) on Friday, retail sales rose by 0.5 percent on a monthly basis in July, recovering from a revised 0.9 percent decline in June. Economists had predicted an increase of 0.6 percent.
When excluding auto fuel, retail sales saw a 0.7 percent rise, contrasting with a 1.3 percent drop in June.
Both the annual and monthly growth figures aligned with economists' expectations.
The ONS noted that department stores and sports equipment retailers saw a boost following summer discounts and sporting events.
Sales volumes increased 1.4 percent year-over-year in July after poor weather dampened sales in July 2023, following a 0.3 percent decrease in June.
Retail sales volumes, excluding auto fuel, similarly posted a 1.4 percent annual increase after easing by 0.8 percent the previous month.
Alex Kerr, an economist at Capital Economics, suggested that if non-high street spending remains strong, overall consumer spending could be more robust than retail sales data suggest.
Kerr added that rising real incomes, as inflation decreases, should lead to accelerated consumer spending growth throughout the remainder of the year.
