UK retail sales growth slows to 4-month low in August, BRC says

British retail sales growth slowed to a four-month low in August as a surge driven by record-hot weather earlier in the summer faded. Total retail sales grew by an annual 0.7% in August, down from 1.3% in July, while like-for-like growth—adjusting for changing floorspace—slowed to 0.5% from 1%. Summer spending started in May this year, as earlier higher temperatures pulled forward related purchases.

While the heat and holiday spending continued to drive food, drink, health, and beauty sales into August, most other categories couldn’t sustain another month of growth. Food sales grew by an annual 2.6% in August, down from 3.8% in July and below the average growth over the past year. Non-food sales fell by 0.8% in August after a 0.7% drop in July, weaker than the average 0.2% growth in the past year.

Shoppers cut back on big-ticket purchases such as furniture and household appliances, favoring cheaper health and beauty products. BRC data is not adjusted for inflation and is based on sales recorded by major retailers between August 2 and August 29. Official retail sales data showed a slowdown in volumes growth to 1.6% in July from 3.8% in June.

Separate data from Barclays, also released on Tuesday, showed overall consumer spending grew 2.1% in August after a 2.0% rise in July. Barclays also reported a fall in consumer confidence to 26% from July’s 21-month high of 30%.

Source: Euronext Markets: Real-time Stock Market Data | live