Retail sales in the UK rose by 0.7% in July and by 3.5% on yearly basis, better than market expectations. This compares with a year ago sales growth of only 1.1%, although it is lower than the rates recorded in 2015 and 2016.
The continued warm weather and the World Cup helped boost food sales and retailers offered discounts in reference to a strong third quarter economic start. The pound has fallen sharply over the past two weeks due to fears of Brexit without a transitional agreement, but GBP rose slightly after the data.
Looking at the last three months to July, retail sales grew by 2.1% compared to the previous three months, the biggest rise since February 2015. Excluding fuel purchases, which fell due to higher oil prices, sales growth over the three months was the fastest since March 2004.
