FX.co ★ UK Retail Sales Unexpectedly Rise

UK retail sales volumes rose 1.0% month-on-month in June 2026, defying market expectations of a 0.3% decline, although slowing from the 1.2% increase recorded in May. The expansion was driven primarily by stronger non-store retail activity, with retailers reporting that sales promotions and firm demand for sports merchandise, clothing, outdoor goods, fans, and air-conditioning equipment supported growth.

Clothing store sales climbed 1.9%, the largest monthly increase since September 2025, underpinned by promotional discounts and warm weather. Other non-food retailers also delivered robust results, with art galleries registering particularly strong sales. Across the sector, retailers commonly cited higher demand for seasonal products, aided by favorable weather conditions.

On an annual basis, retail sales rose 4.2%, beating market expectations of a 2.3% increase and accelerating from a 3.5% year-on-year gain in May.