UK retail sales rise 1% in August
BRITISH retail sales rose 1 per cent in August, official figures showed on Friday (Sep 20).
Economists polled by Reuters had forecast a monthly rise of 0.4 per cent in sales volumes from July.
After a surge in inflation in 2022 which caused a hit to consumer spending power for much of the following two years, a slowdown in price growth and faster increases in wages have helped to restore some of the lost living standards.
But recent reports from UK retailers have shown discretionary spending remains under pressure.
Fashion retailer Primark reported a fall in UK underlying sales in its latest quarter. On Tuesday, B&Q and Screwfix owner Kingfisher said demand for kitchens and bathrooms was weak, while Next said on Thursday that ‘big ticket’ home furnishing items remained a difficult market.
Consumers also appear to have taken fright at comments by the new government of Prime Minister Keir Starmer about the tough economic outlook and the possible need for higher taxes.
A survey published earlier on Friday showed consumer confidence dropping sharply to a six-month low in September. REUTERS
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