LONDON, Sept 20 (Askume) – British retail sales rose 1% in August, stronger than expected, with the rise in July revised down, official data released on Friday showed.
Economists surveyed by Askume expected sales to rise 0.4% last month.
The National Bureau of Statistics said sales rose a revised 0.7% in July, higher than the previously expected month-on-month increase of 0.5%.
The Office for National Statistics said warm weather and end-of-season sales had led to a rise in sales at some supermarkets and clothing retailers.
Sterling rose immediately after the data was released.
A rise in inflation in 2022 will hurt consumer spending power over the next two years, but slower price growth, faster wage growth and interest rate cuts by the Bank of England will help restore some economic growth.
But recent reports from UK retailers show that discretionary spending remains under pressure.
Fashion retailer Primark (ABF.L) reported a drop in underlying UK sales in its latest quarter, while B&Q and Screwfix owner Kingfisher on Tuesday(KGF.L) said demand for kitchens and bathrooms was weak.
However, Next (NXT.L) said on Thursday that sales in the first six weeks of the second half were better than expected, reflecting improved weather. The company said the market for “higher-priced” home furnishings remains tough.
Consumers also appear to be worried by comments from Chancellor Keir Starmer’s new government about the grim economic outlook and the possible need for higher taxes.
Earlier, a survey released on Friday showed consumer confidence fell sharply in September to a six-month low.
