(fxcue news) - Despite an improvement in consumer sentiment, UK retail sales logged a notable decline in June amid election uncertainty and poor weather, data showed Friday. Retail sales decreased 1.2 percent month-on-month in June, in contrast to the 2.9 percent increase posted in May, the Office for National Statistics said. Sales were expected to log a moderate 0.4 percent fall. Excluding auto fuel, retail sales declined 1.5 percent compared to an increase of 2.9 percent in May. The decline was worse than forecast of 0.5 percent drop. Non-food stores sales decreased 2.1 percent in June, reversing May's 3.3 percent increase due to election uncertainty, poor weather and low footfall. Food stores decreased 1.1 percent from May as consumers showed caution with their spending. Meanwhile, auto fuel sales posted a monthly growth of 2.2 percent. The amount spent online fell by 2.7 percent in June from May but rose by 2.3 percent compared with June 2023. In the second quarter, retail sales volume edged down 0.1 percent from the first quarter and decreased 0.2 percent from the last year. The large fall in retail sales in June reversed the jump in May and suggests that rising real incomes and improving sentiment have so far failed to translate into a significant increase in spending on goods, Capital Economics' economist Andrew Wishart said. The economist said the disappointing figures mean that the retail sector will make no contribution to quarterly growth in the second quarter. But this will not stop GDP from expanding by 0.6-0.7 percent in the second quarter, said Wishart. On a yearly basis, retail sales volume eased 0.2 percent in June after rising 1.7 percent in May, while sales were expected to grow 0.2 percent. Excluding auto fuel, sales volume slid 0.8 percent following a 1.6 percent rise in May. Economists had forecast a 0.2 percent increase. Elsewhere, a monthly survey from GfK showed that British consumer sentiment improved in July. The consumer confidence index rose to -13 in July from -14 in June. The reading was seen at -12. The improvement was driven by the major purchase sub-index, which rose 7 points from June. July's poll suggested a note of caution as people wait to see exactly how the new government will affect the wider economy and their personal finances, GfK's client strategy director Joe Staton said.