British consumers defy forecasts as retail sales rise
Retail sales rose in August with volume showing unexpected growth.
The data, released on Friday morning by the Office for National Statistics, outlined how sales rose by 0.5% on July.
According to Reuters, this defied economists’ forecasts of a 0.2% decline and points to signs of resilience in Britain’s economy, despite the ongoing uncertainty surrounding the war in the Middle East.
The ONS data will also be welcomed by the Chancellor, who will be glad of an uptick reversing a fall in July of the same 0.5%.
Looking at August’s retail sales data more closely, the increase was mainly driven by online shopping and department store sales, which were up 1.7% and 1.8% month-on-month, respectively.
Sales volumes also rose by 0.9% in the three months to August when compared with the three months to May.
Positive news will be a confidence booster for all retail operators across the country, but the elephant in the room remains next month’s budget.
The first under the new Labour leadership of Burnham and Healey, many in the retail landscape are hopeful the new PM will stick to his word and give tangible support to businesses in a move that will kick start the revival of the high street.
Burnham has already made reference to fresh powers that will see it harder for gambling and vape shops to open up, but the British Retail Consortium is adamant that more needs to be done on costs for existing high street retailers.
Its CEO, Helen Dickinson, explained: “Retailers don’t need warm words, they need lower costs. With his first Budget weeks away, Chancellor Healey has a chance to throw Britain’s high streets a lifeline. Retail faces cost pressures and households are watching every penny.”
Adding: “Government action on business rates and energy costs would help keep prices down, support investment, and sustain the jobs and communities that retail underpins across the country.”
