Fragile consumer confidence took a toll on retail sales last month amid nerves over Labour’s “painful” forthcoming budget and higher energy bills.
Total retail sales rose by 1 per cent over the year to August, up from July’s 0.5 per cent increase but markedly down on the 4.1 per cent growth in the same period last year, according to the retail sales monitor compiled by the British Retail Consortium and KPMG, the professional services firm. August’s rise was also below the 12-month average of 1.2 per cent.
“Despite summer finally making an appearance and a slight rise in consumer confidence, shoppers did not catch up their spending during August,” Linda Ellett, KPMG’s UK head of retail and leisure, said.
She said there remained “some