U.K. retail sales declined unexpectedly in June, reflecting weak food and non-food store turnover, weighing marginally on the second quarter economic growth.
Retail sales including automotive fuel declined 0.2 percent in June from the prior month, reversing a 0.3 percent rise in May, data from the Office for National Statistics showed Thursday.
Sales were expected to grow 0.4 percent. This was the first drop in three months.
Likewise, sales excluding automotive fuel dropped 0.2 percent, while economists had forecast sales to gain 0.4 percent again as seen in May.
The weaker tone of June's retail sales figures does not alter the big picture that the consumer recovery remains in full swing, Paul Hollingsworth, a UK economist at Capital Economics, said. And with the UK set to experience another period of "good" deflation, the prospects for the second half of this year are bright.
Food store sales dropped 0.3 percent and non-food store sales decreased 0.7 percent. Within non-food sales, household goods and other stores sales fell 0.9 percent and 3 percent, respectively.
On a yearly basis, growth in retail sales including automotive fuel eased unexpectedly to 4 percent from 4.7 percent in May. Economists had expected 4.8 percent expansion.
Sales continued its growth for the 27th consecutive month, which was the longest period of sustained year-on-year growth since May 2008, the statistical office said.
Excluding auto fuel, sales growth slowed to 4.2 percent from 4.5 percent and was also slower than the 5.1 percent gain expected by economists.
During the three months to June, retail sales volume advanced 0.7 percent from previous three months. Sales continued to grow for the 28th consecutive month and showed the longest period of sustained growth since consistent records began in June 1996.
The quarterly growth suggests that consumer spending made a healthy contribution to GDP growth in the second quarter, IHS Global Insight Economist Howard Archer said.
Despite June's dip the prospects for retail sales and consumer spending look bright for the rest of 2015 and beyond, he added.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.