LONDON (Reuters) – British retail sales rose 1% in August, official figures showed on Friday.
Economists polled by Reuters had forecast retail sales to rise 0.4% in the month since July.
After a spike in inflation in 2022 that affected consumer spending for much of the next two years, lower inflation and faster increases in wages have helped regain some of the lost standard of living.
But recent reports from UK retailers have shown that discretionary spending remains under pressure.
Fashion retailer Primark reported a fall in UK core sales in its latest quarter. On Tuesday, the owner of B&Q and Screwfix A kingfisher (LON:) said demand for kitchens and bathrooms was weak, while Next on Thursday said 'big ticket' homewares remained a tough market.
Consumers appear to be fearful of comments by Prime Minister Keir Starmer's new government about the difficult economic situation and the need for higher taxes.
A survey published earlier on Friday showed consumer confidence fell sharply to a six-month low in September.
