The UK retail sector experienced a continued decline in shopper footfall in July, impacted in part by ongoing heatwave conditions, according to recent data. Overall footfall across the country fell by 2.1 percent compared with the same month last year, showing a slight improvement from June's 3.4 percent decrease, figures from the British Retail Consortium and Sensormatic revealed.

High street locations were among the most affected, with footfall down 3.8 percent year-on-year in July. While this represents a notable decline, it is less severe than June’s 6.2 percent drop. Shopping centres also saw a decrease in foot traffic, with footfall falling 1.4 percent compared to July 2025, though this was a smaller decline than the 2.5 percent recorded in June. London reported a sharper overall reduction in footfall, with a 5.3 percent year-over-year decrease for the month.

In the construction sector, the latest data indicates signs of stabilization after a prolonged period of contraction. The UK construction Purchasing Managers’ Index (PMI), published by S&P Global, edged higher to 44.7 in July from 38.4 in June. Despite the improvement, the index remains below the 50 threshold that separates expansion from contraction, indicating the sector continues to shrink. The construction industry has now witnessed a continuous decline in business activity every month since January 2025, marking the longest period of contraction since the global financial crisis in 2008.

The increase in PMI suggests that confidence among construction firms is starting to recover, even as activity levels remain subdued. The persistence of falling footfall alongside tentative signs of recovery in construction highlights ongoing challenges within key sectors of the UK economy amid changing weather conditions and broader economic pressures.