UK Retail Sales Rise Less than Estimated

UK retail sales rose 0.9% month-over-month in June 2025, rebounding from a revised 2.8% drop in the previous month but missing market expectations of a 1.2% gain. It marked the fourth increase so far this year. Food store sales volumes increased 0.7%, reversing a 5.4% decline in May, supported by improved supermarket sales, particularly beverages, amid warm weather. Automotive fuel sales jumped 2.8%, the largest monthly rise since May 2024, also helped by favorable weather. Online sales (non-store retailers) rose 1.7%, reaching their highest level since February 2022. Non-food store sales edged up 0.2%, with department stores and clothing retailers reporting improved activity, citing promotions and weather-related demand. Excluding fuel, sales rose 0.6%, also rebounding from a 2.8% fall. On a yearly basis, retail sales increased 1.7%, swinging from a revised 1.1% drop in May, though slightly below forecasts of a 1.8% rise.