All NewsEducationTVBrokers
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
All NewsHome
← Back to Macro, Rates & FX

UK retail sales growth slows to 4-month low in August

Created at 7 Sep · 11:06 PM2 sources↑ Market-relevant
IN SHORT

UK retail sales growth decelerated to 0.7% year-on-year in August, a four-month low, as the boost from summer heatwaves faded and consumers cut back on spending due to rising bills. Non-food sales declined, while food sales saw modest growth.

Key Numbers

0.7%August total retail sales growth
1.3%July total retail sales growth
0.5%August like-for-like retail sales growth
1%July like-for-like retail sales growth
2.6%August food sales growth
3.8%July food sales growth
-0.8%August non-food sales change
-0.7%July non-food sales change
1.6%July official retail sales volume growth
2.1%August overall consumer spending growth
2.0%July overall consumer spending growth
26%August consumer confidence

Who's Involved

British Retail Consortium
trade body that released retail sales figures
Linda Ellett
Head of Consumer, Retail and Leisure at KPMG
KPMG
sponsor of the retail sales survey
John Healey
Chancellor
Harvir Dhillon
lead economist at the BRC
UK retail sales growth slows to 4-month low in August

↳ Why This Matters

The slowdown in UK retail sales indicates weakening consumer demand, a key driver of economic growth, suggesting potential headwinds for the broader economy as rising bills and the end of seasonal boosts impact household spending.

Key facts

  • UK retail sales growth slowed to 0.7% year-on-year in August.
  • This marks a four-month low for retail sales growth.
  • Food sales increased by 2.6% in August.
  • Non-food sales decreased by 0.8% in August.
  • The slowdown is attributed to the cooling effect of the summer heatwave and rising household bills.
  • Retailers are urging the government to cut taxes ahead of the upcoming Budget.

UK retail sales growth slowed to a four-month low in August, with total sales increasing by 0.7% year-on-year, down from 1.3% in July, according to data from the British Retail Consortium (BRC). Like-for-like sales growth also decelerated to 0.5% from 1% in the previous month.

The slowdown was attributed to the fading impact of record-hot weather earlier in the summer, which had boosted sales in May and continued to influence food, drink, health, and beauty purchases into August. However, most other retail categories struggled to maintain growth.

Food sales saw a year-on-year increase of 2.6% in August, a decrease from 3.8% in July. Non-food sales declined by 0.8% in August, following a 0.7% drop in July, and were weaker than the average 0.2% growth seen over the past year. Shoppers reportedly cut back on larger purchases like furniture and appliances in favor of less expensive health and beauty items.

The BRC data, which is not adjusted for inflation, is based on sales recorded by major retailers between August 2 and August 29. Official retail sales data indicated a slowdown in volume growth to 1.6% in July from 3.8% in June. Separately, Barclays reported that overall consumer spending grew 2.1% in August, a slight increase from 2.0% in July, but consumer confidence fell to 26% from July's 21-month high of 30%.

Frequently asked questions

Total UK retail sales grew by 0.7% year-on-year in August, a slowdown from 1.3% in July.

Food sales grew by 2.6% year-on-year, while non-food sales fell by 0.8%.

The slowdown was attributed to the fading impact of record-hot weather earlier in the summer, which had pulled forward purchases, and rising household bills.

Consumer confidence fell to 26% in August, down from 30% in July.

What Happens Next

01Further analysis of consumer spending trends in the coming months.
CME Headlines
  • 2-Year T-Note futures fell on strong nonfarm payrolls data.
    4 Sep · 5:10 PM
  • 2-Year T-Note futures fell on strong nonfarm payrolls data.
    4 Sep · 5:10 PM
  • Short-end yields rise for 3rd week ahead of August CPI data.
    4 Sep · 5:06 PM

How It Developed

UK retail sales growth slowed to a four-month low in August.
Retail sales grew by 0.7% in the year to August, a slowdown from 3.1% growth in August 2025.
August's growth lagged below the 12-month average of 1.6%.
Spending on big-ticket items like furniture and household appliances declined.
Food sales increased by 2.6% year-on-year in August.
Non-food sales fell by 0.8% year on year in August.
Retailers are calling on the government to reduce their tax burden.

Sources

T1
UK retail sales growth slows to 4-month low in August, BRC saysReuters
T1
Retail sales slow as heatwave boost coolsCity AM

Related Stories

UK job seekers rise despite recovery in permanent hiring
7 Sep · 7:40 AM
Colombia August inflation rises to 6.24%, exceeding forecasts
7 Sep · 11:32 PM
China's forex reserves rise more than expected in August
7 Sep · 8:16 AM
Euro zone investor morale hits four-year high in September
7 Sep · 8:36 AM
ECB poised for 'insurance' rate hike amid inflation concerns
7 Sep · 4:27 AM