LONDON (Reuters) -British retail sales rose 0.5% in July, official figures showed on Friday, after a weak performance in June – due partly to unusually cool and wet weather – weighed on economic growth.
The rise was in line with forecasts by economists polled by Reuters.
The squeeze on British consumers from high inflation in 2022 and 2023 is beginning to ease. Inflation was back at its 2% target in May and June, and only slightly above that in July, while wage growth exceeded inflation by the highest margin since mid-2021 in the second quarter of the year.
Retail sales volumes in July were 1.4% higher than a year ago, the Office for National Statistics said, in line with economists’ median forecast in a Reuters poll.
Compared with February 2020, the last month before COVID-19 lockdowns started, sales volumes are still 0.8% lower.
The Bank of England this month made a first cut to interest rates from their 16-year high.
Britain’s longest-running consumer confidence measure rose to its highest in nearly three years last month as shoppers said their finances had improved and they were more willing to make big purchases.
However, recent reports from UK retailers have been mixed. Clothing retailer Next reported better-than-expected second-quarter sales and raised its full-year profit outlook.
By contrast, luxury brand Burberry warned on profit and other UK retailers have highlighted continuing low consumer confidence around more discretionary purchases.
(Reporting by David Milliken; editing by William James)
Comments