Slight improvement in retail sales in UK

According to recently released figures there has been a surprise improvement in retail sales in the UK for August. The data comes from the Office for National Statistics, and although the improvement was only a slight one it still came as a surprise for many industry officials.

The data shows that in August retail sales levels rose by 1.2%, taking the sales level to 3.3% higher than a year ago. Most industry officials have been expecting retail sales figures to fall by around 0.5% following reports of a bleak outlook for retailers. Officials have said that the increased was mainly fuelled by the sale of shoes and clothes, which increased due to back to school shopping.

However, despite these positive figures for August the report also shows that in the three months leading up to August sales levels fell by 0.8% compared to the three months previous. Officials have also predicted that over the coming months sales levels will slip again, so the August figures have been seen as nothing more than a temporary reprieve.

One economist from ING stated: “With consumer confidence plunging in the wake of soaring inflation, falling asset values and rising unemployment the official retail sales will inevitably correct lower.”