Euro 2004 boost for the high street

Football fans helped push up June retail sales.

12:05 23 July 2004

Retail sales grew by 1.1 per cent last month, boosted by the Euro 2004 football tournament, according to official figures.

The Office for National Statistics (ONS) reported that the June increase in High Street sales was considerably above May's 0.7 per cent rise. Last month's retail figures raised the year-on-year gain in retail sales to 7.2 per cent.

Euro 2004 caused a surge in sales of household goods, particularly new TV sets, drinks and football shirts.

Analysts are now predicting that a further quarter point interest rate rise next month is almost inevitable. The Bank of England's Monetary Policy Committee voted unanimously against a third successive interest rate rise this month.

June saw a general decline in sales at clothing stores and a slight drop in the numbers of people visiting shops.

UK retail sales have now recorded 13 consecutive months of growth, the longest period since comparable records began in 1986.

However, data out earlier this month from KPMG and the British Retail Consortium (BRC), estimated that retail sales grew five per cent during June, a dip from 6.5 per cent in May.