BRC: Spending dips in August

By Sarah Engle, Tue 6 Sep 2011 - Published in Loans

Consumers were not hitting the High Street in August as much as in July, according to new figures released by the British Retail Consortium (BRC).

UK shoppers have been dipping into their credit cards and loans less over the past month, with total sales increasing by 1.5 per cent in August, compared to a rise of 2.5 per cent the preceding month.

Food sales have remained steady, whereas non-food sales have fallen below the previous year's month-by-month level. Footwear and homewares in particular have proven less popular with spenders.

Stephen Robertson, director general of the BRC, said the retail sector performance has been flat despite the increase in VAT and a spell of hot weather at the beginning of the month, which initially boosted sales.

"Poor consumer confidence, high inflation and the on-going squeeze on personal finances remain the biggest threats to the retail sector," he noted.

In similar news, Citigroup has predicted that consumer spending may fall a further 1.1 per cent next year, despite a previous estimate of a one per cent growth.

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