UK consumers increased food and pub spending in July amid England’s World Cup
semi-final run and hot weather, but remained cautious on large-ticket purchases,
the British Retail Consortium said. BRC data showed total retail sales rose 1.3%
YoY in July, below the average and down from June’s 1.9%. Food sales were up
3.8% YoY while non-food sales fell 0.7%; clothing was supported by the heatwave,
footwear declined. IGD CEO Sarah Bradbury said Middle East tensions and
sustained high temperatures are intensifying food-supply chain pressure, raising
the risk of further food-cost inflation and household budget strain into autumn.
Barclays’ broader consumer spending indicator rose 2.0% YoY in July, marginally
above June’s 1.9%.
