British retail sales rose 0.5 percent in July after a weak showing in June – partly due to unusually cold and wet weather – which hampered economic growth, official figures showed on Friday.
Economists polled by Reuters had forecast a 0.5% monthly increase in sales volume in July.
The pressure on UK consumers from higher inflation in 2022 and 2023 is beginning to ease. Inflation returned to its 2% target in May and June, and was slightly above it in July, while wage growth outpaced inflation by the largest margin since mid-2021 in the second quarter of the year.
The Bank of England this month made its first interest rate cut since a 16-year high.
Britain’s oldest gauge of consumer confidence rose to its highest level 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 British retailers have been mixed. Clothing retailer Next reported better-than-expected second-quarter sales and raised its full-year profit forecast.
By contrast, luxury brand Burberry warned on profits, and other British retailers highlighted the continued decline in consumer confidence around more discretionary purchases.
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