FX.co ★ UK Retail Sales Growth Softens in June

UK retail sales rose 1.7% year-on-year on a like-for-like basis in June 2026, undershooting market expectations for a 2.9% increase and slowing from May’s 3.4% gain, to register the weakest growth since February. Despite the loss of momentum, spending was bolstered by the men’s FIFA World Cup and a prolonged heatwave, which lifted demand for clothing, electric fans, air-conditioning units, food and beverages, while pubs also enjoyed stronger takings on England’s matchdays. Non-food sales grew 1.2%, twice their 12‑month average, supported by the highest level of online sales penetration in 2026 so far, as high temperatures discouraged shoppers from visiting physical stores. A broader measure of consumer spending from Barclays also rose 1.9%, with essential spending up 2.2%—the strongest increase in 14 months—while travel spending stabilized after earlier declines. Even so, the British Retail Consortium cautioned that political uncertainty and the impact of the Iran conflict could weigh on consumer spending in the coming months.