91探花

The show retail sales volumes increased by 1% in August, driven by clothing and footwear (2.9%), food sales (1.8%) and household goods (0.6%).

Jacqui Baker, head of retail at 91探花 and chair of ICAEW’s Retail Group, comments: “Swifties, festival goers and BBQ enthusiasts boosted retail sales in August as the summer feeling finally kicked in and consumers could get out and about to enjoy some much-needed sunshine. Bagging the perfect festival outfit or embracing the cowboy boots to get the full Eras tour experience boosted clothing; while summer get togethers and investing in sprucing up outdoor spaces drove food and household sales.

“Despite improvements in the housing market, this is yet to filter through to consumers splashing out on big ticket items, but as interest rates track down later this year, we hope to see a revival in household goods as homeowners look to make their mark on their new pads.

“Competition for discretionary spending and continued caution from consumers ahead of Christmas and possible tax changes in the forthcoming Autumn Budget mean uncertainty remains for retailers. As we look ahead to the Golden Quarter, retailers will be hoping the consumer-led recovery kicks in, and is not derailed by a “painful” Budget.”

Thomas Pugh, economist at 91探花, added: “The strong growth in retail sales in August makes it even more likely that the wider economy returned to growth last month after flatlining in June and July.

“There was further good news on the inflation front. Total retail inflation fell to -0.2%, the first negative reading since February 2021. As consumer spending rises, falling prices should help to convert more of that increase in spending into sales volumes.

“Looking ahead, rising household real incomes, as real wages rise and interest rates fall, should support an increase in consumer spending. However, the big drop in consumer confidence in September, -13 to -20, highlights just how fragile consumer confidence is. With savings rates still high, consumers will need to feel confident enough to start spending, rather than saving. Talk of a “painful” Budget clearly hasn’t helped that.”