Retail sales rise less than expected in July
Retail sales volumes grew more slowly than expected in July as the high street continues to struggle.
The Office for National Statistics said that retail sales increased by 0.2% during the month leaving sales unchanged from last year’s level.
This compares with 0.8% growth in June which had been revised up from a previously reported 0.7% increase.
The figures were weaker than anticipated as economists had predicted a 0.3% rise on the month.
Clothing and footwear stores saw a 0.3% drop in sales volumes while household goods stores also saw a 0.3% fall.
British Retail Consortium director general, Stephen Robertson, commented: “This confirms the painful picture painted by our own figures last week. Conditions are increasingly difficult for customers and retailers. All the growth in sales values came from inflation and January’s increase in VAT; people are actually buying fewer goods than a year ago.
“Food sales continue to outperform non-food with inflation helping to drive top-line growth. But it’s taking a record number of promotions to tempt customers into stores.
“Global economic fears are mounting. Policymakers in Europe and the US must act quickly to implement a coordinated and credible strategy to reduce public sector deficits while supporting growth. Business and consumer confidence needs to be restored quickly.”
