Business

Sales soar amid July heatwave

THE July heatwave boosted sales of food, alcohol and clothing to fuel hopes over the recovery in consumer spending.

According to official statistics, retail sales rose 1.1 per cent across the UK in July on a month earlier and were up three per cent on the same month last year - the steepest rise for two and a half years - driven by soaring sales at supermarkets and department stores.

The soaring temperatures saw shoppers stock up on barbecue goods to drive food sales volumes 2.1 per cent higher on a year earlier, the sharpest rise in more than two years, Office for National Statistics figures showed.

The 1.1 per cent gain was well ahead of economists' average hopes for a 0.7 per cent month-on-month increase and will add to hopes that third-quarter GDP growth can exceed the 0.6 per cent gain in the April to June quarter.

It was the third consecutive rise in month-on-month retail sales, following June's 0.2 per cent increase.

Department stores saw July sales surge 3.1 per cent on a year earlier, while sales of textiles, clothing and footwear were up 1.4 per cent.

Supermarkets also reported higher sales of garden furniture, although household goods stores were a rare weak spot, with sales falling 2.3 per cent on a year earlier.

Month on month there were dips

in sales volumes across department stores and textile, clothing and footwear retailers, but supermarket sales grew 2.5 per cent.

Martin Beck, UK economist at Capital Economics, said shoppers were "lured outside by the sunshine".

"With consumer confidence on the rise and continued growth in employment, the retail sector looks set fair for the third quarter, even as the boost from the weather fades," he said.