Football and summer discounts boost retail sales

Retailers reported a 0.5% rebound in July after the Euros football championship and summer discounting fuelled shopping.

The increase follows a sharp fall in sales volumes, which measure the quantity bought, in June when poor weather dampened demand.

Department stores and shops selling sports goods shifted higher volumes of gear last month.

But the Office for National Statistics (ONS), which released the figures, said it was a "poor month for clothing and furniture shops and falling fuel sales despite prices at the pump falling".

Although retail sales grew in July, the increase was below the 0.7% rise some economists had expected and follows a "mixed picture" across sectors.

While department stores and non-food shops were strong, sales of motor fuel showed a 1.9% drop, despite the price of petrol falling by 1.4p per litre and diesel dipping by 1.1p.

In June, petrol and diesel sales jumped by 2.2%.

While the Euros inspired people to shop for sporting goods, those buying snacks or drinks to watch the championship at home failed to lift spending at food stores with sales showing no growth at all in July.

Andrew Hinds, chairman of jewellery retailers F Hinds, also found a "mixed picture" across the retail sector.

"We actually found June to be slightly stronger than July, slightly against the trend," he told the BBC's Today programme.

He said there are people willing to spend money but it is mainly older customers.

Although interest rates were cut earlier in August, they remain relatively high and Mr Hinds said that "younger people [are] struggling, cutting back [and] sometimes not spending as much as they would have done".

But he said: "There are older people out there who have still got some cash, who are still earning some interest on their savings and willing to spend when they see value for money.”