Retail sales volumes rose 1.0% in June (month-on-month), following a 1.2% rise in May.
Retail sales growth far exceeded predictions of a fall of 0.3%
Retailers suggested strong sales promotions and warmer weather led to the bounce in sales.

Fans, air conditioning units, and outdoor furniture were cited as a key driver of additional spending over the month. Clothing and sports merchandise also gave sales a lift.
Jonathan Moyes, Head of Investment Research at Wealth Club, commented:

“Forecasters were predicting a dreary month for retailers as shoppers were expected to take shelter from the heat. Instead, the heat appears to have led to a sales bonanza as shoppers stocked up on air conditioning units, outdoor furniture and sports merchandise as the World Cup got underway.

Whilst it is pleasing to see our beleaguered retailers get a lift over the month. The reading will do little to improve consumer and business sentiment. The resumption of the Iran war in July has seen Brent Crude touch $100 again overnight. This will undoubtedly weigh on consumers in the latter half of this year as inflation again begins to take its toll. Mortgage rates are already responding to a likely rise in interest rates in response.

Whilst the sun was shining on retailers in June, there are some dark clouds in the distance that are likely to keep a lid on sentiment for the remainder of the year.”