British retail sales soften in July after June World Cup boost

British retail sales fell back as expected in July after ⁠a surge in June when hot weather boosted demand for fans and air conditioners and supermarkets offered promotions alongside the men’s soccer World ⁠Cup, official ‌figures showed on Friday.

Retail ⁠sales volumes last month dropped 0.5% from June, in line with economists’ median forecast ​in a ​Reuters poll, while annual sales growth slowed to 1.6% in July from a downwardly revised 3.8%, slightly below expectations for ‌a ​fall to 2.2%. Consumer sentiment surveys suggest demand has proven ‌robust, despite higher energy ⁠costs caused by the US-Iran war, offering ‌a boost to new Prime Minister Andy Burnham who has tried to mollify voter anger about the cost of living since taking office in July.

GfK’s long-running confidence ​indicator, released earlier on Friday, rose to a two-year high in August- its highest since just after Burnham’s ​predecessor Keir ‌Starmer ​came to power. Recent updates from major British ‌retailers ‌have revealed mixed fortunes.

Clothing retailer Next edged up its annual profit outlook for the third time this year, ⁠with sales boosted by the country’s prolonged period of hot weather. However, sportswear and fashion ‌retailer JD Sports issued a ​profit warning, though it was weakness in US markets, rather than in Britain, which prompted it.