UK retail sales rebound 1% in June, beating expectations

British retail sales rebounded unexpectedly in June, with shoppers increasing their spending on air conditioning and clothing.

The rise added to signs of stronger economic activity during warmer weather and the soccer World Cup, according to data released by the Office for National Statistics.

Retail sales volumes increased 1.0% in June, the ONS said on Friday.

The result was significantly stronger than economists' expectations for a 0.3% decline, according to a Reuters poll.

The latest figures followed a 1.2% monthly increase in sales volumes in May.

Meanwhile, the sharp 1% fall reported for April was revised to a smaller decline of 0.7%.

The data showed that retail activity remained stronger than expected despite earlier weakness.

Compared with the same period a year earlier, sales volumes were 4.2% higher in June.

Economists had expected an annual increase of 2.3%.

Online spending continues to rise

The latest figures also pointed to continued growth in online retail activity.

The amount spent online, referred to as online spending value, increased 3.8% in the second quarter of 2026 compared with the first quarter.

Online spending values were also 11.7% higher than in the second quarter of 2025.

Within the monthly data, online sales values rose 2.8% in June compared with May.

The figure was 14.4% higher than the amount recorded in June 2025.

The increase in online spending contributed to a larger share of retail purchases being made through digital channels.

The total amount spent across in-store and online sales increased 0.8% over the month.

As a result, the proportion of online sales rose to 29.4% in June from 28.9% in May.

That was the highest proportion of online sales since April 2021, highlighting the continued strength of digital spending within the overall retail market.

Consumer sentiment shows signs of improvement

The stronger retail figures came alongside signs of improving consumer sentiment.

The data aligned with a recent survey showing improved consumer sentiment.

However, concerns remained over the war in Iran.

The combination of stronger retail activity and improving consumer sentiment indicated resilience among British shoppers during the period.

The increase in sales also came as warmer weather supported spending on products such as air conditioning and clothing.

The soccer World Cup was also cited as part of the backdrop to the stronger spending environment.

Inflation and labour market conditions

The retail data came against a backdrop of changes in broader economic conditions.

British inflation slowed in June, with motor fuel and food prices falling during a brief ceasefire in the Gulf conflict.

At the same time, the downturn in the jobs market showed signs of stabilising.

The combination of easing inflation and some stabilisation in employment conditions formed part of the wider economic backdrop as retail sales strengthened in June.

Overall, the June data showed a broad-based improvement in retail spending, with higher sales volumes, stronger online activity and increased total spending.

The figures added to emerging signs of a pickup in economic activity, even as concerns over geopolitical developments and labour market conditions continued to weigh on the broader outlook.