England’s run to the final of the men’s football European Championship helped to power a recovery in retail sales across Great Britain in July, easing the pressure on the high street after a washout in June.

The Office for National Statistics (ONS) said retail sales volumes rose by 0.5% last month, matching City economists’ forecasts. It follows a revised fall of 0.9% in June when poor weather deterred shoppers from spending.

However, households continued to hold back from making big-ticket purchases amid the cost of living crisis.

Liz McKeown, an ONS director of economic statistics, said monthly increases in spending were led by department stores and sports equipment shops. “Both the Euros and discounting across many stores [boosted] sales,” she said.

“These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling.”

The latest snapshot showed growth in sales of groceries, sporting goods and audiovisuals, in a month bookended by the final of Euro 2024 – in which England were beaten 2-1 by Spain – and the start of the Paris Olympics.

Scotland also competed in the football tournament but did not progress beyond the group stages.

Fashion sales struggled despite the arrival of warmer weather, while spending on homeware and furniture performed badly, as consumers concentrated their spending on summer experiences.

Kris Hamer, the director of insight at the British Retail Consortium, said: “The high cost of living is still bearing down on consumers, but with interest rates finally easing, retailers are hopeful that this will buoy consumers’ confidence, and with it greater spending, particularly as we head into August.”

The Bank of England cut interest rates earlier this month for the first time since the start of the Covid pandemic, from 5.25% to 5%, helping to ease some of the pressure on households after the sharpest rise in borrowing costs since the 1980s.

An easing of inflation to more normal levels has also reduced pressure on household budgets despite a modest increase from 2% in June to 2.2% in July, according to figures released this week. Inflation had peaked at more than 11% two years ago amid a rise in the price of energy and food sparked by Russia’s full-scale invasion of Ukraine in 2022.

Kien Tan, a senior retail adviser at the accountancy firm PwC UK, said: “Despite perhaps a disappointing performance for parts of the retail sector in July, we do expect further recovery in the short to medium term.

“The summer weather finally reaching the country this month will be better news for grocery and fashion; and the more favourable economic backdrop of higher wages, lower inflation and lower interest rates augur well for spending more widely in the run-up to Christmas.”

Jacqui Baker, the head of retail at RSM UK and the chair of the Institute of Chartered Accountants in England and Wales’ retail group, said: “The UK summer finally made an appearance in July, allowing households to dust off their barbecues. The summer of sport inspired consumers to invest in new sports equipment as Euros, Wimbledon and Olympic fever swept the nation. July’s general election result also provided consumers with some certainty and led to a further improvement in consumer confidence.”