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UK retail sales volumes rise 0.5% in August, recovering from July's fall

Sales volumes rose 0.5% on the month and 2.4% on the year, the ONS said on 18 September, with non-store retailers and food stores leading a 0.9% rise over the latest three months.

By FTC Editorial TeamPublished 1 min read

Shoppers on Oxford Street in London outside Regent Hall
David Hawgood / Wikimedia Commons · CC BY-SA 2.0

The Office for National Statistics published its first estimate of August 2026 retail sales on Friday 18 September, the day after the Bank of England's interest rate decision (report).

The figures

  • Sales volumes, month on month: up 0.5% in August, following a fall of 0.5% in July (unrevised)
  • Three months to August, compared with the three months to May: up 0.9%
  • Year on year: sales volumes up 2.4% compared with August 2025
UK retail sales volumes rise 0.5% in August, recovering from July's fall — central bank rate path diagram
A central bank's policy rate path across recent meetings

What drove the rebound

Non-store retailers (mostly online) partly recovered from July's fall, which the ONS had attributed to promotions being pulled forward into June. Department stores also picked up in August after stock availability problems in July. Over the latest three months, non-store retailers' strong June and steady food store sales did most of the work behind the 0.9% rise.

UK retail sales volumes rise 0.5% in August, recovering from July's fall — risk-reward diagram
A risk-reward ratio of 1 to 2

Why it matters for the pound

Consumer spending is one of the more direct channels through which households feel the energy shock the Bank of England flagged in its 17 September decision: UK CPI inflation reached 3.1% in August, driven mainly by fuel prices (report). A rebound in sales volumes, even a modest one, is a sign spending held up despite that price pressure, alongside a labour market the Bank has described as soft (report).

The next retail sales release, covering September, is due 23 October. Live prices: GBP/USD.

Sources

  1. Office for National Statistics: Retail sales, Great Britain: August 2026

Common questions

How much did UK retail sales rise in August 2026?

Sales volumes rose 0.5% from July to August 2026, and were 2.4% higher than a year earlier, according to the Office for National Statistics' first estimate published 18 September 2026.

Did UK retail sales fall in July 2026?

Yes, by 0.5%, which the ONS said was partly because non-store retailers had pulled forward promotions into June. August's 0.5% rise partially reversed that fall.

This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money. Read the risk warning. Spotted an error? Tell the editors.

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