Official data has revealed that there was a modest increase in retail sales last month, as retailers battled to woo cash-strapped consumers with wide-ranging price cuts.
According to figures released by the Office for National Statistics (ONS) late last week, retail sales volumes were up 0.6 per cent month-on-month in December, rebounding from a decline of 0.5 per cent in November. Shop price inflation, meanwhile, declined to its lowest level in 16 months.
The ONS report also showed that shoppers spent £42.1bn at British retail outlets last month, up from £39bn in 2010. However, some economists remain somewhat concerned over the outlook for consumer spending in the early part of 2012.
“The risk remains that pressurised and worried consumers will put away their purses and wallets, and hunker down for an extended period after a late flurry of spending in the run-up to Christmas and then taking advantage of the best of the bargains in the clearance sales,” said Howard Archer, chief UK and European economist at IHS Global Insight.
British Retail Consortium public affairs director Jane Bevis also warned that consumers are likely to rein in spending over the next few months, despite an anticipated fall in inflation.
