Retail sales dip in July
ONS figures show underlying volumes rising
August 21 2002
The underlying UK retail growth rate continued to rise in July, despite a month-on-month dip.
According to the latest figures from the Office for National Statistics, retail sales fell by 0.4 percent on the month in July, leaving them 4.4 per cent higher than a year earlier.
The dip was less than had been expected after a 1.9 per cent monthly increase in June, and the ONS said the month-on-month fall was not as significant as the underlying growth rate.
The ONS figures show underlying volume growth of 4.6 per cent in July, higher than the 4 per cent underlying rate in June. Shop prices rose by 0.4 per cent.
Household goods retailers once again enjoyed the strongest underlying growth, experiencing an increase in sales volumes of 7.1 per cent. Clothing and footwear retailers saw average underlying growth in July of 6 per cent.
The ONS saids the three monthly growth rates into July were stronger for department stores, stable for household goods stores and decreased slightly for supermarkets.
Richard Lowe, retail director of Barclays Business Banking said: “The unseasonally hot weather in July did not sap the energy of consumers. DIY retailers and electricals reported runs on cooling fans and domestic air conditioning units as householders struggled with record temperatures. Although the July numbers were stronger than anticipated, it remains to be seen if this is the start of a more sustained period of growth.
“Deflation remains an issue for clothing and footwear shops as well as household goods retailers. Clothing and footwear, and most notably women’s outerwear, was the largest contributor to the upward movement in the All Items RPI in July, with summer sales markdowns being less extensive than a year earlier. Nevertheless, overall, clothing and footwear prices remain lower than in 2002.”
