UK retail sales rose 1% in August By Reuters

LONDON (Reuters) – British retail sales rose 1 percent in August, official figures showed on Friday.

Economists polled by Reuters had forecast a 0.4 percent month-on-month rise in July sales volumes.

After a spike in inflation in 2022 that hurt consumer spending power for much of the next two years, a slowdown in price growth and faster wage increases helped restore some of the lost living standards.

But recent reports from UK retailers have shown that discretionary spending remains under pressure.

Fashion retailer Primark reported a decline in underlying UK sales in its latest quarter. On Tuesday, the owner of B&Q and Screwfix Gull (LON: ) said demand for kitchens and bathrooms was weak, while Next said on Thursday that “good-ticket” home furnishings remained a difficult market.

Consumers also appear to have been spooked by comments from Prime Minister Keir Starmer’s new government about the tough economic outlook and the possible need for higher taxes.

A survey released earlier on Friday showed consumer confidence fell sharply to a six-month low in September.