FX.co ★ UK Retail Sales Fall The Least Since January

The CBI retail sales balance rose to -26 in July 2026 from -54 in June, easily beating market expectations of -45 and indicating the smallest drop in UK retail sales in six months. While sales were still below year-ago levels, retailers reported that the pace of decline had moderated. Sales for the time of year were also judged to be below seasonal norms by the narrowest margin since February. The CBI noted that the sector continues to struggle with weak consumer confidence and persistent cost pressures, keeping the overall outlook muted. Looking ahead, retailers' expectations for August also improved, with the balance climbing to -26 from -45, the highest reading since March. The CBI called on Prime Minister Andy Burnham’s government to support high-street retailers by cutting property taxes, tackling rising labour costs, and safeguarding hiring flexibility as employment reforms are finalized. In contrast, wholesalers reported broadly flat sales volumes, their first period of stability in more than two years.