UK Retail sales, up 2.4% in September

Retail sales in the UK have increased by 2.4% in September comparing with the same month last year, according to data published by the British Retail Consortium.Concerning the quarter trend, retail sales have grown by 5.5% in the three months ending in Seprtember, comparing with the 5.4% growth registered on the same period last year.
Sales on UK high streets slowed in September as milder weather and consumer caution hit spending levels, according to the British Retail Consortium. It said that like-for-like sales, which strips out the effects of changes in floor space, rose by an annual rate of 2.4 pct, against expectations of 2.5 pct. The rate was also at 2.5 pct in August. The BRC pointed out that the slowdown came despite the drop in sales in the same month last year when spending was dented in the aftermath of the bombings in London. Total sales, which takes into account changes in floor space, also moderated in September, to an annual rate of 5.2 pct from 5.5 pct the previous month. Both like-for-like and total sales are the weakest since July. Clothing and footwear were hit hard by unseasonally mild weather, while homeware and furniture sales were also slower than in August. On the other hand, food sales picked up strongly after slowing in August and were the main driver of overall growth. The BRC said consumers are still pessimistic after the Bank of England's unexpected interest rate hike in August. Major purchases were still often dependent on promotions and discounts, it added. "There is no let-up in discounting and the second half of the month was not as good as the first. The comparative like-for-like figure for October is harder and next month's results should give a better idea of consumer confidence," said Kevin Hawkins, BRC director general.