Sunny weather and women's Euro lift UK retail sales in July, ONS says

Retail sales volumes in the UK increased by 0.6% in July, the Office for National Statistics said, a stronger monthly rise than analysts had been expecting and one the ONS attributed in part to sunny weather and the women's European football tournament.

Clothing and footwear stores were among the best performers in July, while online retailers also recorded strong sales growth. Supermarkets, sports shops and household goods stores had a strong start to the month, according to the ONS.

The ONS delayed publication of the retail figures by two weeks amid concerns about the quality of the statistics, and issued an apology when it released the data, saying it had made errors in its seasonal adjustments. The agency has faced recent criticism over the reliability of some of its statistics, notably figures covering the jobs market.

While retail sales rose in July, the ONS said sales in the three months to July were 0.6% lower than in the previous three months, signaling weakness in the broader short-term trend despite the single-month uptick.

Ministers and market participants monitor retail sales closely because official statistics are used in setting government policy and are taken into account by the Bank of England when making key financial decisions, including interest-rate setting. The ONS's acknowledgement of mistakes and the temporary delay in publication have renewed scrutiny of the statistics body's processes.

Analysts and economists will watch forthcoming monthly releases for confirmation that the July increase reflects a sustained improvement rather than a short-lived seasonal or event-driven boost. The ONS said it would continue work to improve the quality and reliability of its measures.