LONDON (Reuters) -British retail gross sales rose by a stronger-than-expected 1% in August and development in July was revised up, official figures confirmed on Friday.
Economists polled by Reuters had forecast a month-to-month rise of 0.4% in gross sales volumes final month.
The Workplace for Nationwide Statistics stated gross sales volumes in July rose by a revised 0.7%, up from a earlier estimate of a 0.5% month-on-month enhance.
Some supermarkets and clothes retailers reported a lift due to hotter climate and end-of-season gross sales, the ONS stated.
Sterling rose instantly after the figures had been printed.
Following a surge in inflation in 2022 which induced a success to shopper spending energy for a lot of the next two years, a slowdown in value development, sooner will increase in wages and an rate of interest lower by the Financial institution of England have helped to revive a few of the misplaced dwelling requirements.
However current reviews from UK retailers have proven discretionary spending stays beneath stress.
Vogue retailer Primark reported a fall in UK underlying gross sales in its newest quarter and on Tuesday, B&Q and Screwfix proprietor Kingfisher (LON:) stated demand for kitchens and bogs was weak.
Nevertheless Subsequent stated on Thursday that it had seen better-than-expected gross sales within the first six weeks of its second half, which mirrored an enchancment within the climate. It added that ‘massive ticket’ residence furnishing gadgets remained a troublesome market.
Customers additionally seem to have taken fright at feedback by the brand new authorities of Prime Minister Keir Starmer concerning the powerful financial outlook and the doable want for larger taxes.
A survey printed earlier on Friday confirmed shopper confidence dropping sharply to a six-month low in September.
