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UK retail sales were worse than expected last month, according to official data on Friday, as consumers contended with wet weather and the intensifying cost-of-living crisis.
The Office for National Statistics said retail sales fell 3.2% annually in July, compared to a downwardly-revised 1.6% fall in June. The market had been expecting a 2.1% fall for July, according to FXStreet-cited consensus.
June’s annual decline was first estimated at 1.0%.
From the previous month, sales fell 1.2% in July, compared to a downwardly-revised 0.6% rise in June. July’s reading was worse than market consensus, which had forecast a 0.5% decline.
June’s rise was first reported as 0.7%.
‘Food stores sales volumes fell by 2.6% in July 2023, with supermarkets reporting that the wet weather reduced clothing sales, although food sales also fell back; retailers indicated that the increased cost of living and food prices continued to affect sales volumes,’ the ONS said.
In light of the wet weather, shoppers opted for online shopping. 27% of retail sales took place online, rising from 26% in June. This was the highest proportion since the 28% seen in February 2022, the ONS noted.
Excluding fuel, retail sales were down 3.4% annually in July, having fallen 1.6% in June. On a monthly basis, non-fuel sales were down 1.4% in July, after rising 0.7% in June.
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