Warm weather contributes to larger than expected hike in retail sales

RETAIL sales in the UK jumped by 1.1% in July from the previous month, boosted by hot weather.

The rise, reported by the Office for National Statistics (ONS), was significantly larger than expected and economy watchers suggest it is another indicator of the recovery gaining momentum.

Sales are up 3% compared with last year – the fastest annual rise since January 2011.

The ONS figures are based on a survey of 5,000 retailers around the UK.

Supermarkets saw a monthly rise in sales of 2.5% and reported strong sales in warm weather-linked items such as barbeque food, outdoor items, clothing and alcohol.

Overall, UK consumers bought a total of £7bn a week in July, up from £6.8bn per week in June.

Jane Whitlock, consumer business partner at accountancy and advisory firm Deloitte in Birmingham, said: “Today’s strong statistics provide further evidence that the UK economy has reached a turning point with sales growing at their fastest rate for more than two and a half years. 

“Last month’s good weather brought consumers out onto the High Street and drove sales of seasonal goods. Following a difficult spring, this bounce back will provide welcome relief to a sector that has been particularly badly hit over the past five years.

“The recovery is building momentum. This is the third consecutive month-on-month rise and while we do not expect a return to pre-recession levels of consumer spending growth, there are increasing signs that purse strings are just beginning to loosen. 

“This positivity needs to be tempered slightly due to the weak comparable figure from last year but coupled with positive news from elsewhere in the economy, retailers will begin to take some confidence that this recovery can be sustained through the rest of the year.”

Richard Lowe, head of retail & wholesale at Barclays, said: “July was a triumph for retailers, and in particular food retailers, as consumers got into the spirit of the summer with great weather and sporting success helping to boost confidence. 

“With the new school year just around the corner, many retailers will be hoping the summer’s feel good factor continues as parents and students get ready for the start of term.”