Overview
- Official Office for National Statistics data released on Friday showed retail volumes fell 0.5% month‑on‑month in July 2026 and annual growth eased to 1.6%.
- The fall was concentrated in clothing and footwear, which dropped 2.7%, and in non‑store (mainly online) sales, which fell 3.6%, while food stores and fuel recorded monthly gains.
- ONS economists and retailers said sales were pulled forward into June by earlier promotions, hot weather and World Cup activity, and June’s previously reported surge was revised down.
- Three‑month retail volumes remain positive, up 1.1%, but a simultaneous rise in CPI inflation to 2.9% has renewed scrutiny from the Bank of England over whether to prioritise cooling prices or supporting demand.
- Canada’s Statistics Canada showed retail sales rose 0.6% in June but issued an advance estimate pointing to a likely 0.8% fall in July, underscoring similar short‑term swings in consumer spending across advanced economies.