UK retail sales rose 0.5% YoY in July as warm weather boosted sales of summer items, but cautious spending due to high inflation persisted.

In July, UK retail sales rose 0.5% year-on-year, an improvement from the 0.2% decline in June. The increase was attributed to warm weather boosting sales of summer clothes, health, and beauty products. However, consumer spending remained cautious due to high inflation, with spending on expensive items remaining low. Barclays Plc reported that card spending fell 0.3% year-on-year in July. Despite the cautious spending, the British Retail Consortium's data shows signs of growing consumer confidence. The Bank of England's recent cut to interest rates is expected to help improve spending growth for the remainder of the year and in 2025.

August 05, 2024
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