The Office for National Statistics said sales volumes increased by 0.3% month-on-month, with online promotions helping overcome a decline in spending.
The increase was against economists’ forecasts of a 0.2% fall, the ONS said. For the three months to July, sales fell 1.2% year-on-year.
ONS director of economic statistics, Darren Morgan, commented: “Retail sales nudged up very slightly in July, but looking at the longer-term picture, they are continuing the downward trend which started last summer.
“Online sales did pick up this month, as retailers told us that sales were boosted by a range of offers and promotions.
The news coincides with research showing that consumer confidence is at an all time low, due to the increased cost of living. GfK’s Consumer Confidence Index, showed a decrease by three points in August to -44 – the lowest level since records began in 1974.
Joe Staton, GfK’s client strategy director, said: “A sense of exasperation about the UK’s economy is the biggest driver of these findings. Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row. These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people.
“With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming. Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”