UK retail sales volumes fell 0.5% in July, reversing June’s 1% gain, as non-food retailers saw reduced activity following earlier promotions tied to hot weather and sporting events, the Office for National Statistics reported.
The decline was driven by a pullback in household goods and clothing sales after retailers front-loaded discounts in June to capitalize on the heatwave and the World Cup, which boosted pubs and supermarkets selling alcoholic beverages. ONS chief economist Grant Fitzner noted that while overall retail sales rose over the three months to July, motor fuel was the sole sector to post a decline.
Fitzner highlighted that hot weather and promotions supported sales of outdoor products, fans, clothing, and online sports merchandise. Alcoholic drinks and beverages retailers reported strong performance, attributing gains to promotions, favorable weather, and the World Cup, though the broader non-food segment struggled with reduced discounting in July.
Consumer confidence improved to -14 in July, up from -17 in June, according to GfK’s Consumer Confidence Index, marking the highest level in two years. The uptick came despite rising energy bills and heightened geopolitical tensions in the Middle East, which GfK’s Neil Bellamy warned would continue testing UK consumers’ resilience.
Oil prices remained elevated, with Brent crude trading at $93.42 per barrel, down 0.38% for the day but still higher than at the start of the week, amid ongoing US-Iran tensions.
Global equity markets showed mixed performance, with Japan’s Nikkei down 0.53%, while South Korea’s Kospi and Hong Kong’s Hang Seng rose 0.87% and 0.92%, respectively, as stress in global bond markets persisted.
