U.K. retail sales show modest recovery in June after May slump

Published 25/07/2025, 07:36
© Reuters.

Investing.com -- U.K. retail sales volumes rose by 0.9% month-on-month in June, falling short of the expected 1.2% increase and recovering less than a third of May’s 2.8% decline.

The data released Friday showed retail sales growth slowed significantly in the second quarter, with volumes rising just 0.2% quarter-on-quarter compared to a 1.3% gain in the first quarter.

Household goods retailers faced particular challenges, with sales dropping 0.1% month-on-month for the second consecutive month as the housing market continued to struggle following changes to stamp duty.

Food sales increased by 0.7% month-on-month in June, but this represented only a partial recovery from the 5.4% fall recorded in May.

Retailers reported that warm weather helped boost sales during the month.

The modest retail performance supports projections that the UK economy grew by just 0.1% in the second quarter of 2025.

Consumer confidence also weakened slightly, with the GfK measure falling from -18 in June to -19 in July, suggesting potential headwinds for consumer spending.

Despite real wages continuing to rise at a solid pace, the weaker-than-expected June retail figures indicate downside risks to forecasts of consumer spending growth reaching 1.4% for 2025, up from 0.6% in 2024.

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