June's heatwave delivered a welcome boost to Britain's retail sector, with shoppers flocking to stores for cold drinks and summer essentials as temperatures soared to nearly 33C. The scorching weather helped reverse a disappointing May performance that had raised concerns about consumer spending.
The Office for National Statistics (ONS) revealed that retail sales volumes jumped by 0.9% in June, recovering from a downwardly revised 2.8% decline in May. The hot conditions sparked a surge in demand for both alcoholic and non-alcoholic beverages across the country.
First heatwave drives sales surge
June marked the first of three heatwaves to hit Britain this summer, with the extreme temperatures providing a much-needed lift for retailers. Supermarkets reported particularly strong trading as customers stocked up on drinks to cope with the sweltering conditions.
Fuel sales also benefited from the sunshine as consumers ventured out and about, taking advantage of the warm weather for trips and activities. The improved conditions encouraged people to leave their homes and spend money after the poor weather in May.
Growth disappoints economists' forecasts
However, the retail rebound fell short of economists' expectations, who had predicted a stronger 1.1% increase for the month. The more modest growth means quarterly retail sales volumes rose by just 0.2% in the three months to June.
This represents a significant slowdown from the 1.3% quarterly growth recorded at the start of the year, highlighting ongoing challenges facing the retail sector. The figures suggest underlying pressures on consumer spending remain despite the weather-driven boost.
Broader trends show mixed picture
Hannah Finselbach, senior statistician at the ONS, said: "Following a poor May, it was an improved month for retail sales with growth across all main sectors. The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases."
She added: "It was also a good month for fuel sales as consumers ventured out and about in the sunshine. Looking at broader trends, retail sales are up slightly across the latest quarter, but are down when compared with pre-pandemic levels."
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
