Spending data reveals mixed fortunes for businesses in wet summer

Consumer-facing businesses had mixed fortunes last month as retail sales increased while consumer card spending fell, according to two surveys.

The British Retail Consortium-KPMG retail sales monitor recorded a return to growth for retail sales. Total sales increased by 0.5 per cent year on year in July, surpassing the three-month average growth of 0.3 per cent but below 2023’s 1.5 per cent growth.

This was driven by a 2.6 per cent rise in food purchases over the three months to July and a 0.3 per cent year-on-year increase in online non-food sales as consumers bought clothing and beauty products in preparation for the holidays.

Separately, Barclays found that spending on non-essential items declined for the second consecutive month in July as mixed weather continued to