💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UK August retail sales recover, driven by furniture and vacuum cleaners

Published 18/09/2014, 09:36
© Reuters A woman carries shopping bags as she walks along Oxford Street in central London

LONDON (Reuters) - British retail sales growth recovered last month after stagnating in July, driven by strong sales of furniture and a rush to buy high-powered vacuum cleaners, official data showed on Thursday.

Retail sales volumes rose 0.4 percent on the month, in line with forecasts and the strongest growth since April, after flatlining in July, according to the Office for National Statistics (ONS).

On the year, retail sales were up 3.9 percent last month, also a four-month high, helped in part by a weak performance in the same month last year. Economists polled by Reuters had expected a rise of 4.1 percent.

Britain's consumers have been the main driver of the country's economic recovery which began last year, helped by record low interest rates and weak inflation that has eased the pressure on their spending power.

Wage growth, however, remains weak - something the BoE has put at the centre of its debate on when to start weaning Britain off record-low interest rates.

Prices in stores fell 1.2 percent in August, the steepest decline in more than five years, as prices in petrol stations fell 5.0 percent. Prices in food stores showed their first annual fall since 2004 as supermarkets waged a price war.

The ONS said sales of furniture soared 23.4 percent year-on-year, helped by sales of desks and flat-pack furniture for students ahead of the start of the academic year.

An ONS official also a pointed a surge in sales of high-powered vacuum cleaners, as shoppers sought to beat an end-of-August introduction of European Union rules to ban the sale of high-powered appliances.

Similar bans are planned early next year for hairdryers, lawnmowers and electric kettle as the EU tries to curb energy use and greenhouse gas emissions, the official said.

A survey from the British Retail Consortium earlier this month showed surging clothing and footwear sales helped British retail sales accelerate sharply in August.

Retail sales account for just under 6 percent of British gross domestic product.

© Reuters. A woman carries shopping bags as she walks along Oxford Street in central London

(Reporting by Andy Bruce and William Schomberg)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.