Fresh signs that shoppers are becoming more cautious amid the continued economic gloom emerged today.
Official figures show retail sales volumes last month were just 0.4% above the level seen in August – the lowest growth rate since June.
While department stores enjoyed their best month for nearly seven years, sales of clothing and footwear fell as warm weather hit the launch of winter ranges.
Food stores saw volumes edge up 0.1%, again the slowest growth rate since June when the World Cup and Golden Jubilee celebrations kept shoppers at home.
City experts believe consumers will tighten their belts as the economic uncertainty and volatile stock market conditions persist and today’s figures are largely in line with expectations.
Slower growth would give the Bank of England valuable room to cut interest rates and help revive the flagging economy.
The Office for National Statistics said three-month growth rates in September were above those in the previous quarter with volumes 0.7% higher.
And an estimated £21.3bn was taken at cash tills across the UK last month, 4.5% above September a year ago.
But the annual growth in retail sales volumes is now just 4.6%, the lowest figure since January 2001.
EGi News 24/10/02
