Retail sales up but consumers cut back

UK retail sales picked up in July but continued to show longerterm signs that consumers are making cutbacks to save money amid soaring inflation.

Sales lifted by 0.3% in July, significantly higher than economists’ expectations of a 0.2% drop, the Office for National Statistics reported.

But sales fell by 1.2% in the three months to July, reflecting a gradual decline in spending.

Darren Morgan, director of economic statistics at the ONS, said: “Retail sales nudged up very slightly in July, but looking at the longer-term picture, they are continuing the downward trend. Clothing and household goods sales declined again, with feedback continuing to indicate consumers are cutting back due to increased prices and concerns around affordability and cost of living.”

Food store sales rose by just 0.1% in July, a decline from the revised 2.7% increase in June when grocery spending was boosted by the Queen’s Jubilee weekend. Higher food prices and the impact of cost-of-living affordability concerns have dragged down sales in recent months, retailers told the ONS.