Finance
UK sunshine warmed up retail sales in June, ONS says
Published by Global Banking and Finance Review
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
UK retail sales rose 0.9% in June due to hot weather, boosting drinks and fuel sales. Inflation concerns persist as consumer confidence dips.
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 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.
However, the increase was smaller than the median forecast of 1.2% in a Reuters poll of economists.
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)
Retail sales volumes rose by 0.9% month-on-month in June, recovering from a 2.8% drop in May.
The inflation rate rose to 3.6% in June, with food prices increasing faster, causing many households to feel financial pressure.
The warm weather in June helped boost sales in drinks, clothing, and fuel, particularly benefiting supermarket retailers.
The Bank of England is expected to cut interest rates by a quarter of a percentage point on August 7 due to a slowdown in the jobs market.
A survey indicated that consumer confidence dipped in June, as households prepared for potential tax increases and increased their savings.
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