Published Fri, Jul 24, 2026 · 02:59 PM
[LONDON] UK retail sales defied expectations again with a surprisingly strong rise in June, as sunny weather and the World Cup outweighed any concern among shoppers over the cost of living.
The Office for National Statistics (ONS) said the total volume of goods sold in stores and online rose 1 per cent in June, following a 1.2 per cent jump in May when retailers lured consumers with discounts. Economists had expected a 0.3 per cent decline for June.
ONS senior statistician Hannah Finselbach said there was strong demand for “outdoor products, air conditioning and clothing” in June. She added that sports merchandise also sold well online.
The figures add to evidence that the mood among consumers is improving after war in the Middle East dented sentiment. Households are enjoying the slowest inflation in more than a year, due to cheaper motor fuel and food, while the downturn in the labour market shows signs of stabilising.
However, the recovery remains fragile. The recent collapse of a US-Iran truce has renewed concerns about surging energy bills and rising mortgage costs.
This raises the pressure on Prime Minister Andy Burnham to offer households the “breathing space” promised in his first Downing Street speech earlier this week. Since taking office, Burnham has already announced he will cut a 5 per cent tax on energy bills and capped bus fares, and signalled that more help is on the way. BLOOMBERG
