Based on the latest numbers released by the UK Office for National Statistics (ONS), retail sales increased by 0.5% after a 0.9% decline in June 2024. This gain fell just short of the predicted 0.7% increase.
Latest Consumer Spending Stats Reflect A Growing UK Economy
Analysts attributed the growth to boosts received from the sale of football shirts and other merchandise triggered by England’s Euros final. Other contributing factors were sales of alcoholic drinks, electronics and discounted sports equipment.
Clothing and footwear, and homeware sections, experienced a 0.6% backslide. Sales in food flatlined, staying more or less the same. The UK clothing sector experienced its 11th consecutive month of sales declines as summer temperatures only kicked in late in July 2024.
According to a Sky News report, experts chalked up the June 2024 consumer spending drop to political uncertainty around the national election, unpleasant weather and “low footfall”. The 0.9% dip was, however, less than the expected 1.2% decline for that month.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Online sales boomed and recorded the highest rates since the pandemic era’s spike in February 2022. This sector made up 27.8% of all retail sales in July 2024.
These statistics paint a tangible picture of household consumption trends across the UK. They also reflect the financial stability of families and the broader economy.
Indications are that the UK economy grew by 0.6% over the last three months. Inflation for July 2024 came in at 2.2%, a slight rise from the June 2024 2%. Indications also reflect an increase in wages, which partly explains a rise in consumer spending.
