Retail sales return to growth across Great Britain, boosted by Euro 2024 and discounts – business live

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

A busy week for UK economic data ends today, with the news that retail sales across Great Britain have returned to growth.

Retail sales volumes rose by 0.5% in July, the Office for National Statistics reports this morning. That follows a fall of 0.9% in June when households cut back amid poor weather, and election uncertainty.

Department stores and sports equipment stores reported a boost in sales “following summer discounts and sporting events” last month, the ONS says.

Sales volumes were 1.4% higher compared with July 2023, when bad weather hit the high streets.

But, volumes are still 0.8% lower than pre-pandemic levels.

The pattern of spending was mixed, though.

Sales volumes at “non-food stores” rose by 1.4% in July – driven by higher takings at department stores - after a 1.9% drop in June.

Retailers suggested that summer discounting and sporting events, such as the European football championship in which England and Scotland competed, boosted sales.

But, automotive fuel sales volumes fell by 1.9% in the month.

ONS director of economic statistics Liz McKeown says:

“Retail sales grew in July led by increases in department stores and sports equipment shops with both the Euros and discounting across many stores boosting sales.

“These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”

We learned yesterday that the UK economy grew by 0.6% in April-June, and was the strongest growth in the G7 group of advanced economies over the past six months.

This morning’s retail sales data suggests the UK economy continued to grow last month; Michael Brown, senior research strategist at brokerage Pepperstone, says:

This morning’s UK retail sales figures showed that consumers started the third quarter of the year on a relatively solid footing, with sales having risen by 0.5% MoM, and by 0.7% MoM when fuel is excluded from the data, implying that the solid economic momentum seen in the first half of 2024 has continued at the start of the third quarter.

The agenda

• 7am: UK retail sales report for July

• 10am BST: Eurozone trade balance 10am

• 1.30pm BST: US building permits/housing starts 1.30pm

• 3pm BST: University of Michigan’s US consumer confidence 3pm