By Michael Susin
Retail sales in the U.K. increased in August, supported by improved costumer confidence, according to the latest sales-monitor report from the British Retail Consortium published on Tuesday.
Total retail sales for the four weeks to Aug. 26 increased by 4.1% compared with the prior month, above the three-month average growth of 3.6%, the report said. In August last year, retail sales rose 1.0%.
Food sales rose 8.2% over the three months to August, while non-food sales decreased 0.2%.
“The sales figures reflected the improvement in consumer confidence in August, and retailers hope this general upwards trend will carry on. Not all areas benefited, clothing and footwear saw weaker growth as families held back spending on children’s uniforms and other back-to-school goods until the last minute,” BRC Chief Executive Helen Dickinson said.
Looking ahead, sales growth is expected to fall in the coming months, even if volumes remain the same, on the back of a slowdown on the rate of price rises as inflation eases, she said.
“Furthermore, high interest rates and high winter energy bills will put pressure on many households to spend cautiously.”
Write to Michael Susin at michael.susin@wsj.com
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