UK Retail Sales Decline in July, Core Figures Miss Expectations

• UK Retail Sales fell 0.5% MoM in July, meeting some forecasts.
• Core retail sales declined 0.9% MoM, worse than 0.5% expected.
• Annual sales grew 1.6%, missing 2.2% forecast.

United Kingdom retail sales experienced a 0.5% month-over-month decline in July, aligning with some market forecasts, following a revised 0.7% increase in June. However, core retail sales, excluding auto motor fuel, fell by 0.9% month-over-month, a larger contraction than the 0.5% decline economists had anticipated. On an annual basis, retail sales grew by 1.6% in July, significantly lower than the 2.2% forecast and the prior 3.8% rise. This marks the first monthly decline since April, with the Office for National Statistics attributing the weakness primarily to reduced non-food store sales and demand potentially being brought forward to June due to earlier promotional activity.