LONDON (Reuters) -British consumers shopped more in June after a sharp drop in May as hot weather helped to boost the sales of drinks, clothes and car fuel, official figures showed on Friday. Retail
UK sunshine warmed up retail sales in June, ONS
Impact of Weather on Retail Sales
LONDON (Reuters) -British consumers shopped more in June after a sharp drop in May as hot weather helped to boost the sales of drinks, clothes and car fuel, official figures showed on Friday.
Consumer Confidence and Inflation
Retail sales volumes rose by a month-on-month 0.9%, a partial rebound from May's 2.8% plunge which was the biggest fall since December 2023.
Retailer Performance Overview
However, the increase was smaller than the median forecast of 1.2% in a Reuters poll of economists.
Economic Context and Future Outlook
Many British households are feeling the squeeze again from an inflation rate that rose to 3.6% in June with food prices rising faster.
A survey published earlier on Friday showed consumer confidence dipped this month ahead of possible tax increases later this year and households added to their savings.
In the three months to June, sales volumes rose by 0.2%, the weakest such increase since the three months to February, the Office for National Statistics said.
ONS senior statistician Hannah Finselbach said the warm weather last month helped supermarket retailers who reported an increase in drink purchases and fuel sales rose.
"Looking at broader trends, retail sales are up slightly across the latest quarter but are down when compared with pre-pandemic levels," Finselbach said.
British retailers have highlighted the impact of the country's weather on their sales recently.
Supermarket group Sainsbury's reported better-than-expected quarterly trading with food and clothing boosted by warm temperatures. But fast food retailer Greggs warned on profit complaining that June's heatwave hit overall footfall.
Sterling was little changed against the U.S. dollar immediately after the data was published.
Britain's economy has stumbled after a strong start to 2025 with overall output contracting in April and May.
The Bank of England is expected to cut interest rates by a quarter of a percentage point on August 7 as it responds to a jobs market slowdown. However, inflation pressures have thwarted bets on faster cuts to borrowing costs in the coming months.
(Writing by William Schomberg; additional reporting by James Davey; editing by William James)
