This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/sep/17/bargain-hunters-retail-sales-august-high-street

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Bargain hunters prop up retail sales in August Bargain hunters prop up retail sales in August
(35 minutes later)
Britain’s high street stores kept up their record of monthly sales increases in August as shoppers were lured by heavy price discounting, according to official figures.Britain’s high street stores kept up their record of monthly sales increases in August as shoppers were lured by heavy price discounting, according to official figures.
The sales rise stretches back to June 2014 and is likely to be leapt on by hawks on the Bank of England’s monetary policy committee as a sign of strength in the economy and another reason to raise interest rates as early as next spring.The sales rise stretches back to June 2014 and is likely to be leapt on by hawks on the Bank of England’s monetary policy committee as a sign of strength in the economy and another reason to raise interest rates as early as next spring.
But the volume of goods sold in retail outlets managed only a 0.2% increase from July, which one analyst described as “fairly feeble”.But the volume of goods sold in retail outlets managed only a 0.2% increase from July, which one analyst described as “fairly feeble”.
Related: Slowdown in UK internet sales may signal online shopping peak
Heavy discounting has pushed down retail prices by 3.3% since August 2014 and it is possible to track back the year-long rise in sales to the month prices started to tumble. Although much of the fall in prices can be accounted for by lower petrol prices, bargain-hunting shoppers have also kept prices low in other sectors.Heavy discounting has pushed down retail prices by 3.3% since August 2014 and it is possible to track back the year-long rise in sales to the month prices started to tumble. Although much of the fall in prices can be accounted for by lower petrol prices, bargain-hunting shoppers have also kept prices low in other sectors.
Furniture and household goods have shown the strongest growth in volume sales over that past year while food has stagnated.Furniture and household goods have shown the strongest growth in volume sales over that past year while food has stagnated.
The ONS’s head of retail sales statistics said growth was coming evenly from small and large retailers, which both rose by 0.9% in August. “Small stores were particularly boosted in August by sales of school uniforms, while most of the growth in large stores was coming from online,” Kate Davies said.The ONS’s head of retail sales statistics said growth was coming evenly from small and large retailers, which both rose by 0.9% in August. “Small stores were particularly boosted in August by sales of school uniforms, while most of the growth in large stores was coming from online,” Kate Davies said.
Ruth Miller, UK economist at Capital Economics, said: “August’s retail sales figures showed that the pace of spending growth has remained fairly feeble so far this quarter. But we doubt that this signals a more widespread slowdown in the consumer recovery.Ruth Miller, UK economist at Capital Economics, said: “August’s retail sales figures showed that the pace of spending growth has remained fairly feeble so far this quarter. But we doubt that this signals a more widespread slowdown in the consumer recovery.
“But there are plenty of reasons to be optimistic about spending growth ahead. The fundamental drivers of spending remain robust. Households’ discretionary spending power will see a further boost as inflation dips once more into negative territory in coming months. Meanwhile, annual growth in regular pay has continued to strengthen, rising to its strongest since late-2008. So sales should start rising again soon.”“But there are plenty of reasons to be optimistic about spending growth ahead. The fundamental drivers of spending remain robust. Households’ discretionary spending power will see a further boost as inflation dips once more into negative territory in coming months. Meanwhile, annual growth in regular pay has continued to strengthen, rising to its strongest since late-2008. So sales should start rising again soon.”
Howard Archer, chief UK economist at IHS Global Insight, said: “Modest retail sales growth in August adds to the evidence that the economy has hit a soft patch in the third quarter. The sales data reinforce our belief that third-quarter GDP growth is unlikely to come in any better than 0.5% quarter-on-quarter, which would be down from expansion of 0.7% quarter-on-quarter in the second quarter.”Howard Archer, chief UK economist at IHS Global Insight, said: “Modest retail sales growth in August adds to the evidence that the economy has hit a soft patch in the third quarter. The sales data reinforce our belief that third-quarter GDP growth is unlikely to come in any better than 0.5% quarter-on-quarter, which would be down from expansion of 0.7% quarter-on-quarter in the second quarter.”