According to Phil Mullis, Partner and Head of Retail and Wholesale at top-20 UK accountancy firm, Wilkins Kennedy, the cloudier and wetter weather in August held off a few of the crucial sales, that would normally be accounted for in the summer season.
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Shoppers spent some £28.5bn, or £6.9bn a week, at UK retailers in August, up by by 0.2% on last year’s monthly spend of £6.9bn, but down by 0.3% on July’s £7.1bn. Sales of school uniforms before the return to school helped offset a fall in food sales.
Retail sales rose 3.3 percent year-over-year in July, slower than June’s 3.8 percent climb.
Annual sales grew by 3.7 percent in August, the slowest pace since September last year.
The Bank of England is edging closer to raising rates, but persistently low inflation, a strong sterling and fears of a sharp slowdown in China have bought the central bank some time.
Stats SA reported that the main contributors to the 3.3% increase in sales were general dealers, and retailers in textiles, clothing, footwear and leather goods.
Retailers said the drop in food sales in August reflected large numbers of people going away on holiday, even after seasonal adjustments had been factored in.
If vehicle sales are excluded, retail turnover recorded only a 0.8 per cent increase over July last year, due to a slight rebound in discretionary spending.
Britain’s economy relies heavily on consumer demand for growth.
Wage rises combined with low inflation have helped boost consumer spending.
Data on Wednesday showed earnings after bonuses grew at their fastest rate in more than six years.
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Department stores and sellers of medical goods and toiletries, watches and jewellery, telecommunications apparatus and computers, and recreational goods recorded higher sales over July last year.
