Retail sales rise as sunshine and rate cuts boost August trading
The figures reflected a ‘bright summer of retail sales’, helped by warm weather, the August bank holiday and the recent cut to interest rates
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Retail sales rose in August, closing out the summer on a stronger footing, according to new data from the Office for National Statistics (ONS).
The ONS Retail Sales Index showed a 3% year-on-year increase in sales by value and a 1.2% rise in sales by volume, marking the third consecutive month of growth.
The British Retail Consortium (BRC) commented that the figures reflected a “bright summer of retail sales”, helped by warm weather, the August bank holiday and the recent cut to interest rates. Clothing, books and furniture all recorded stronger sales.
However, the industry body warned that growth was not enough to offset rising costs across the sector as business confidence remained fragile. A BRC survey earlier this year found that 56% of chief financial officers described their outlook for the next 12 months as “pessimistic”.
Kris Hamer, director of insight at the BRC, said: “Even if this sales growth continues, it would not be nearly enough to mitigate the mass of costs hammering the industry since last year’s Budget.”
He added that the timing of the upcoming Budget – due close to the Black Friday shopping period – and the prospect of further tax rises were weighing on sentiment.
The BRC has urged ministers to deliver “meaningful” reform of business rates to reduce costs for shops.
