Good weather and Women's Euros helps UK net surprise boost to retail sales

Friday, 5 September 2025 09:33

By Sarah Taaffe-Maguire, business and economics reporter

Retail sales rose a surprising amount in July, as good weather and the Women's Euros led people to part with their cash, official figures show.

The amount of spending rose 0.6% in July, according to figures from the Office for National Statistics (ONS), far above the 0.2% rise anticipated by economists polled by Reuters.

In particular, clothing and footwear stores, as well as online shopping, experienced strong growth.

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When looked at on a three-month basis, the numbers are weaker, with a 0.6% fall in sales up to July due in part to downward revisions in June.

Spending has declined since March, when supermarkets, sports shops, and household goods saw strong sales at the beginning of the year as warm and sunny weather pushed summer purchases earlier. Though compared to a year ago, sales are up 1.1%.

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

A problem with the figures

These figures were originally due to be published in August but were delayed by two weeks so the ONS could carry out "quality assurance" checks.

Following the checks, the statistics body found a "problem", which meant it had to correct seasonally adjusted figures.

It hasn't been the only question mark over the reliability of ONS figures.

In March, UK trade figures were delayed due to errors from 2023, and the office continues to advise caution in interpreting changes in the monthly unemployment rate due to concerns over data reliability.

As a result of the latest error, previously monthly figures overstated the monthly volatility in the first five months of 2025, the ONS's director general of economic statistics, James Benford, said.

Mr Benford apologised for the release delay and for the errors.

What could it mean?

It could mean retrospective changes to the UK economic growth rate, according to Rob Wood, the chief UK economist at Pantheon Macroeconomics.

Read more:
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April's economic growth rate will be revised down, and May's will be moved up as a result, Mr Wood said.

There will be no impact on the Bank of England's interest rate decision, he added.

Sky News

(c) Sky News 2025: Good weather and Women's Euros helps UK net surprise boost to retail sales

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