U.K. retail sales growth is expected to slow next month after demand for clothing pushed up sales in July, the Distributive Trades Survey from the Confederation of British Industry showed Wednesday.
The retail sales balance came in at +21 percent in July, which was below the expected score of +29 percent. A balance of +13 percent expect sales to increase in August.
IHS Global Insight Economist Howard Archer, said although the survey signaled slower retail sales growth, fundamentals still look bright for consumer spending.
Further, 22 percent of firms said that their total retail sales volumes of sales were above average for the time of year, whilst 24 percent said they were below average, giving a rounded balance of -1 percent.
“Summer trading is traditionally slower across the retail sector but warm weather can often provide a welcome boost, as we saw towards the end of June and the beginning of this month,” Barry Williams, CBI Distributive Trades Chairman, said.
“Despite the upbeat outlook for the UK economy, retailers are still finding conditions challenging and it’s certainly something every shopkeeper will need to keep an eye on.”
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