Total sales volumes rose by 0.6 per cent between July and August, driven by growth in the non-food sector including textiles, clothing and footwear, according to The Office for National Statistics (ONS).
Sales volumes at food stores jumped 1.3 per cent in the month to August, the largest increase for this sector since June last year. The average weekly value of sales in August was£4.9 billion, 3.8 per cent higher than the previous year.
Sales volume in the three months to August increased by 1.3 per cent, compared to a rise of 1.2 per cent in the three months to July. This was also driven by an increase in sales volumes for non-food stores. However, the largest decrease occurred in household goods stores.
Ernst & Young UK head of retail Gavin George said: “Although better than forecast, a 0.6 per cent rise in sales volumes ends a difficult summer for most of the retail sector and underlines the continued tough trading conditions on the high street.
"More importantly though, September has brought a further deterioration in consumer sentiment, driven by a number of factors. Firstly, the psychological impact of the Northern Rock crisis is likely to put a further brake on many shoppers spending. It also seems likely that the full effect of the five interest rate rises is only now working its way through to the consumer’s pocket. And the reported slowdown and uncertainty in the housing market clearly adds to this consumer fragility.”
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