Retail rebounds as shops shrug off growth fears
SALES on the high street saw a rebound in October after a sharp September dip.
Retail sales volumes were 0.8 per cent higher in October than in September, according to figures published yesterday by the Office for National Statistics.
“Given recent concerns that the UK economy has been losing momentum and the importance of consumer spending, October’s healthy rebound in retail sales is particularly welcome and reassuring news,” said economist Howard Archer of market analysts IHS.
However, October’s sales jump failed to cancel the sharp dive in September which occurred due to warm weather delaying winter clothing purchases.
Annual growth was better with the quantity bought in the retail sector climbing 4.3 per cent year-on-year in October – the 19th consecutive month of annual growth.
“The high street continues to see solid retail sales volume growth driven by fierce price competition,” said John Hawksworth, chief economist at PricewaterhouseCoopers.
“Food stores face particularly tough trading conditions, with modest volume growth and falling prices. This reflects deflationary pressures from declining global food and energy prices and the general strength of sterling since early 2013, as well as fierce competition from discounters such as Aldi and Lidl.”