Retail sales

Retailers across the UK suffered their worst July trading figures in a decade, as sales were hampered by cooler weather.

 

The British Retail Consortium (BRC) said like-for-like sales were 1.9 per cent lower than in 2004.

 

Total sales, which include new stores, rose two per cent.

 

However, the BRC said the effects on retail sales of the London bombings could have been worse.

 

It called for a further interest rate cut to revive consumer confidence, following last week's reduction to 4.5 per cent. 

 

 

Stakeholder Response: British Retail Consortium

 

 

Kevin Hawkins, director general of the BRC, said: "Despite a relatively short burst of good weather and continued discounting by many retailers, the downward trend in like-for-like sales has worsened - in fact this is the worst July since 1995.

 

"While the recent cut in interest rates by the MPC is obviously welcome, it will take several months for there to be any significant effect on consumer spending: more cuts are needed between now and Christmas."

 

 

Stakeholder Response: Nationwide

 

 

A spokesman said: "Nationwide's Consumer Confidence Index showed that consumer confidence rebounded in July, following steep falls in May and June.

 

"It appears that fears about a downturn that existed in recent months have lessened.The prospect of an interest rate cut may also have aided the rebound in sentiment."