British Retail Sales Boosted by Men's Euros in July

In July, British retail sales saw an increase partly attributed to the men's Euros soccer championship. According to the Office for National Statistics, sales volumes were 0.5% higher than the previous month. The squeeze on consumers due to high inflation is easing, and consumer confidence is on the rise.

British retail sales saw an increase in July, a shift partially driven by the men's Euros soccer championship, according to official figures released on Friday. This uptick followed a notably cool and wet June that had depressed spending and impacted broader economic growth. The Office for National Statistics (ONS) reported that retail sales volumes rose by 0.5% from the previous month and were 1.4% higher than in July 2023, aligning with economists' forecasts.

"Retail sales grew in July, driven by rising sales in department stores and sports equipment shops, boosted by both the Euros and widespread discounting," said Liz McKeown, the ONS' director of economic statistics. The impact of high inflation, which squeezed British consumers in 2022 and 2023, is starting to ease. Inflation hit its 2% target in May and June and edged slightly above in July, while wage growth outpaced inflation by the widest margin since mid-2021 in the year's second quarter.

Sales volumes remain 0.8% lower compared to February 2020, the month before COVID-19 lockdowns began. The Bank of England recently made its first cut to interest rates from a 16-year high. Consumer confidence in Britain reached its highest level in almost three years as shoppers reported improved finances and greater willingness to make significant purchases. Nonetheless, recent reports from UK retailers have been mixed. While clothing retailer Next exceeded second-quarter sales forecasts and raised its profit outlook, Burberry issued a profit warning, and clothing store sales volumes fell by 0.6% in July, down 4.0% from a year earlier, according to the ONS.