Retail Sales Dip in July Amid Mixed Economic Signals
Monthly decline contrasts with three-month growth and rising consumer confidence, as World Cup boosts drink sales.
Carla Rooney
Retail sales volumes fell by 0.5 per cent in July.
All main sectors, excluding motor fuel, surged. Fitzner confirmed hot weather and promotional activities significantly boosted sales of outdoor products and items such as fans; clothing and online sports merchandise also performed strongly.
Retailers specializing in alcoholic drinks saw robust performance in July, a direct consequence of heatwaves and the World Cup. Pubs and sports bars, classified within the hospitality sector, reportedly benefited from World Cup matches, pouring an additional 30 million pints and generating an extra £150 million in sales.
The overall decline in retail sales is partly attributed to a drop in non-food sales in July, as British retailers reportedly brought promotions forward to June due to the hot weather. Separately, retail sales slipped in July as a steep decline in clothing sales failed to offset higher spending on drinks during the World Cup.
The GfK consumer confidence survey rose two points to -14 in July, reaching its highest level in two years. However, renewed tensions in Iran and a jump in energy bills last month are understood to have dented consumer finances.
Brent crude oil traded at $93.42 a barrel. Asian share indices showed mixed results on Friday: Japan's Nikkei dropped 0.53%, South Korea's Kospi gained 0.87%, and Hong Kong's Hang Seng rose 0.92%.