UK retail sales slip in February
Second monthly fall suggests fall in consumer confidence
March 20 2003
UK retail sales fell by 0.1 per cent in February, the second monthly fall in a row, according to Office for National Statistics.
The further decline on the January figure brings the year-on-year sales growth rate down to 3.2 per cent, the lowest level since July 1999. The figures will increase concerns that consumer confidence is slipping despite low unemployment and interest rates,
The last time retail sales fell for two months running was in May and June of last year when spending was disrupted by extended celebrations for the Queen’s Golden Jubilee celebrations.
The City has been expecting a slight rise in sales, but the ONS said there was sales weakness in all product areas, Price deflation also continues to be an issue for retailers, with the ONS measure of high street inflation showing a decline of 0.4 per cent.
Paul Clarke, national retail director, Barclays Business Banking said: “The slow down in retail price deflation may well be a false dawn for retailers. Consumer confidence may continue to suffer as the April tax changes hit pay packets and demand slackens. In particular, household products and furniture retailers continue to have to incentivise people, post the January sales, to buy big-ticket purchases such as bedroom and living room furniture.”
