Retail Sales Slow After July Heatwave

Written By Unknown on Kamis, 19 September 2013 | 16.01

Consumers reined in their spending in August following July's heatwave which had boosted demand for food and sales of outdoor goods.

The Office for National Statistics (ONS) said retail sales volumes tumbled by 0.9% on the month.

Economists had expected an increase, given continuing good weather in August and high numbers of people taking their holidays at home in the UK.

It meant the annual rate of growth slowed to 2.1% - supporting recent caution among retailers on talk of a recovery on the high street.

Food sales - which lifted strongly in July amid the heatwave - fell 2.7% on the month, reversing July's gain.

Rising house prices, record low mortgage rates and signs of economic recovery had been thought to have given consumer spending a boost but economists had also warned on whether the July performance was sustainable because inflation continues to outpace wage growth.

The retail sector, which accounts for 6% of the UK economy, has largely reported improved earnings but no big names had witnessed a huge change in spending attitudes as budgets remained tough.

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