In July consumer spending continues to be influenced by factors such as mortgage and rent increases, as well as job security concerns. Credit: Shutterstock.

According to the latest figures released by the British Retail Consortium (BRC), the growth outpaced the three-month average of 0.3%.

The British Retail Consortium (BRC)’s chief executive Helen Dickinson noted the late arrival of British sunshine boosted summer clothing sales as well as health and beauty as consumers prepared for social outings and holidays.

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Dickson added: “Now that election uncertainty is over and the UK government is rolling out plans to kickstart economic growth, retailers are planning their own investment strategies. Many will be looking to the Autumn Budget, keen to see an end to business rate rises under the new Labour government. They will also be looking for any details of the reform of the whole business rates system, promised in Labour’s manifesto.”

Linda Ellett, UK head of consumer, retail & leisure at KPMG, cautioned that while certain summer staples have helped drive growth, the overall upturn may be less than retailers had hoped for during this key period. She highlighted that consumer spending continues to be influenced by factors such as mortgage and rent increases, as well as job security concerns.

“ONS data for the first quarter of 2024 shows a growing average percentage of household income being put into savings. But it’s looking increasingly likely that the retail sector will see a gradual drip effect from those choosing to spend some, rather than the spending taps suddenly being turned on full,” explained Ellett.

Earlier this month (August), data from the BRC’s Sensormatic IQ footfall monitor showed total UK retail footfall decreased by 3.3% year-on-year in July 2024 marking the 12th consecutive month of decline.

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Dickinson attributed the decline to several factors, including increased consumer spending on holidays and leisure activities. She had also highlighted the impact of the recent election and said: “Election week saw particularly weak footfall, as political electioneering peaked, creating uncertainty for many consumers.”