British retail sales registered a surprise increase last month, beating analysts’ forecasts as UK stores battled strong economic headwinds.
According to the Office for National Statistics (ONS), October retail sales were up by 0.6 per cent on September’s figure, while sales volumes in smaller outlets were 5.3 per cent higher year-on-year. Big-name retailers, meanwhile, sought to woo customers with a series of high-profile price promotions.
“The retail sales figures were better than expected, although longer-term comparisons still point to a flat picture,” said British Chambers of Commerce chief economist David Kern. “While the improvement in sales is welcome, the relentless squeeze on disposable incomes will put pressure on people's ability to spend.”
IHS Global Insight chief UK and European economist Howard Archer observed that the ONS data offered some cause for optimism that the British economy may be able to sustain growth, but warned consumers were likely to remain “very cautious” for an extended period.
Responding to the figures, British Retail Consortium director general Stephen Robertson called on chancellor George Osborne to support the retail industry by scrapping next year’s planned fuel duty and business rates increases.
