Retail sales in Britain have increased by slightly more then predicted by economists in August, according to official figures out this morning.
Sales volumes rose by 0.5% over the month and by 0.7% year on year. It followed a 0.5% jump in July, which was revised down by the Office For National Statistics from the previously reported 0.6%.
The ONS said clothing stores and non-store retailing (online, as well as stalls and markets) had grown in August thanks to the good weather.
The government body added food stores also registered a rise, with specialist shops such as butchers and bakers recovering from poor sales in July thanks to improved footfall.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Retail sales in August were bolstered by continued warm weather as consumers enjoyed the final month of summer. Barbecue season may have contributed to the boost in food sales volumes, as more consumers opted for entertaining at home.”
Dr Kris Hamer, director of insight at the British Retail Consortium, added: “August closed out a bright summer of retail sales on a high note, with volumes up for the third month in a row.
“The prolonged sunshine, bank holiday and interest rate cut all helped to boost sales, especially for clothing and books. People are also spending more on their homes, with furniture seeing a boost for another month following a long period of decline.”
However, sales volumes fell by 0.1% in the three months to August, compared with the three months to May. But this was a slowing in the rate of decline when compared with a 0.6% fall in the three months to July.
“This was mainly due to a poor period for non-food stores, such as antiques dealers and auction houses as well as tech stores, with fuel sales also falling,” said senior ONS statistician Hannah Finselbach.
“These were only partially offset by increases from online and clothing shops.”
Hamer of the BRC warned, even if the sales growth continued, “it would not be nearly enough to mitigate the mass of costs hammering the industry since last year’s budget”.
“Business confidence remains weak,” he said. “Earlier this summer, 56% of CFOs described their feelings about trading conditions over the next 12 months as ‘pessimistic’.
“And, there is little sign of improvement in the run-up to Christmas, especially with the budget falling so close to Black Friday and fears of potential further tax rises.”
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