UK retail sales lose momentum in July

| August 10, 2010 | 0 Comments

The British Retail Consortium (BRC) today announced UK retail sales growth slowed in July as Government spending cuts dented consumer confidence.

According to the BRC, like-for-like sales grew 0.5% in July compared with a year ago, down from 1.2% in June.

However, food sales remained strong but big-ticket items were weak.

Sales over the last couple of months have been boosted by the World Cup with strong sales of food and electrical goods.

Stephen Robertson, BRC’s director general, said: “Talk of public spending cuts is unsettling customers and they are concentrating on essentials.

“It’s clear the recovery continues to need support. The Bank of England must resist pressure to increase interest rates too soon,” added Mr Robertson.

In related news today, the latest survey from the Royal Institution of Chartered Surveyors (Rics) revealed a fall in house prices in July.

According to Rics, a decline in buyer demand is resulting in a fall in house prices and the downward trend is expected to continue.

Both sets of figures today will no doubt raise fears about the strength of the economic recovery.

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