Consumers bought less than expected at the shops last month despite falling prices and record low interest rates.
In its latest monthly health check of the UK’s retail sector, the Office for National Statistics (ONS) found that sales volumes grew by just 0.1 per cent in July after a 0.1 per cent fall in the previous month. This was below analysts’ expectations for a 0.4 per cent increase.
A 2.6 per cent fall in fuel sales, food stores, clothing and footwear stores was partly offset by a 3.6 per cent rise in department stores and household goods stores. The ONS said the sales of household electrical appliances and furniture rose strongly on the month, probably reflecting a pick-up in Britain’s housing market.
As a result,