June Retail Sales - Worse Than expected

19th July 2024

The Office for National Statistics has reported retail sales figures in Great Britain for June:

Retail sales volumes fell by 1.2% in June 2024 following a rise of 2.9% in May.

Non-food store sales volumes fell by 2.1% in June, Food fell by 1.1%.

Volumes fell across all sectors excluding fuel.

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club commented, "Retail sales volumes came in weaker than expected in June, following a stronger-than-expected May. This continues the volatility in monthly sales patterns seen since the turn of the year, with strange weather and economic caution playing a role.

Consumers weren't exactly splashing the cash in June - sales in every category, excluding fuel, declined. But we should remember that May sales were especially strong. Sales volumes over the last 3 and 6 months are broadly flat and suggest the consumer is in reasonable health, but not exactly feeling flush.

The volatility in monthly retail sales is making it even more difficult than usual to read the economic tea leaves. June was not a great month for the sector. But inflation is moderating, wages are rising and the election is now done and dusted, providing much needed certainty. This means sales could easily bounce back over summer, especially if the weather Gods start being a little more kind."