Euro 2024 and summer discounts help boost retail sales – in latest sign of growing economy
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British retailers saw sales rise last month after a boost from Euro 2024 and summer discounting, official figures show, in a further sign of a growing economy.
The Office for National Statistics (ONS) said retail sales grew 0.5% in July, after contracting 0.9% in June.
It was, however, slightly below predictions, with a consensus of economists forecasting a 0.7% increase for the month.
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The increase was thanks to discounts in sports equipment shops and department stores as the Euros football tournament drove purchases, the ONS added.
High street retailers said sales of football shirts, electronics such as TVs and alcoholic drinks were all stronger during England’s journey to the Euros final.
Cclothing and footwear shops saw a 0.6% dip, while homeware retailers also saw volumes fall 0.6%.
Food stores, meanwhile, saw sales remain flat for the month.
The dip in June buying was attributed to election uncertainty, poor weather, and low footfall. It was less steep than first thought, however, as the 0.9% contraction was revised up from 1.2%.
It was the 11th month in a row that clothes sales fell as the temperature rise of late July came late in the season.
But online sales grew and made up 27.8% of all sales – the highest percentage since the COVID-19 pandemic month of February 2022.
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UK economy grows by 0.6%
Why does it matter?
Retail sales figures are significant as household consumption, measured by the data, is the largest expenditure across the UK economy. They can also help track how consumers feel about their financial position and the economy more broadly.
The latest ONS release caps off a week of announcements which showed the UK economy grew 0.6% over three months; the rate of inflation reached 2.2% in July, up from 2% a month earlier; and wages are still rising but at a slower pace.
The new Labour government has pinned its hopes of increased public spending and its overall success on getting the economy growing.
But Chancellor Rachel Reeves said the Conservatives had left a £22bn gap in the public finances and Labour had the worst economic inheritance of any incoming government since the Second World War.
