UK Retail Sales Growth Cools to 1.8% in July BRC Report

UK retail spending lost momentum in July, with like-for-like sales rising 1.8% from a year earlier, the British Retail Consortium said on Tuesday. The increase fell short of economists’ 2.0% consensus and marked a slowdown from June’s 2.7% gain. The BRC’s wider measure of total sales advanced 2.5% year on year, down from a 3.1% rise the previous month. The trade group attributed the early-month boost to unseasonably warm weather—the Met Office recorded the fifth-warmest July on record—which lifted demand for summer clothing and food and drink for outdoor gatherings. Food sales grew 3.9%, reflecting both higher prices and stronger volumes, while clothing sales accelerated 4.2%, their fastest pace since September 2024. Retailers cautioned that spending tailed off as temperatures cooled, and analysts are watching whether consumers will dip into savings to sustain purchases amid mounting job losses and moderating wage growth.