British retailers saw sales rise last month after a boost from Euro 2024 and summer discounting, official figures show, in a further sign of a growing economy.
The Office for National Statistics (ONS) said retail sales grew 0.5% in July, after contracting 0.9% in June.
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The increase was thanks to discounts in sports equipment shops and department stores as the Euros football tournament drove purchases, the ONS added.
High street retailers said sales of football shirts, electronics such as TVs and alcoholic drinks were all stronger during England's journey to the Euros final.
Football also helped grocery sales recover though most other categories were slowed. There was a decline in footwear, clothing, and household goods purchases.
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Tap hereThe dip in June buying was attributed to election uncertainty, poor weather, and low footfall. It was less steep than first thought, however, as the 0.9% contraction was revised up from 1.2%.
It was the 11th month in a row that clothes sales fell as the temperature rise of late July came late in the season.
But online sales grew and made up 27.8% of all sales, the highest percentage since the COVID-19 pandemic month of February 2022.
Why does it matter?
Retail sales figures are significant as household consumption, measured by the data, is the largest expenditure across the UK economy. They can also help track how consumers feel about their financial position and the economy more broadly.
The latest ONS release caps off a week of announcements which illustrated an economy with lower inflation and more growth than the last two years, while wages have grown faster than the overall pace of price rises.
The new government has pinned its hopes of increased public spending and its overall success on getting the economy growing.
But Chancellor Rachel Reeves said the Conservatives had left a £22bn gap in the public finances and had the worst economic inheritance any incoming government since the Second World War.
The data released this week challenges this assessment.
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