August retail sales levels cause surprise

According to recent reports industry officials were pleasantly surprised recently when data showed that there had been an unexpected surge in retail sales levels for the month of August. The rise in retail sales levels was not a huge one, but many industry experts had been expecting sales levels to fall by around 0.5%, so the increase of 1.2% in high street sales came as good news. The figures came from the Office for National Statistics.

The August increase meant that sales figures were actually 3.3% higher this August compared to last August. Officials said that the main factor behind the increase in sales was the increase in the sale of shoes and clothing in the ‘back to school’ period. Shoes and clothing sales surged during the month. However, food sales saw a decline of 0.2%. Many officials had been expecting consumers to cut back dramatically due to the financial situation and overstretched household budgets.

However, despite the surprise increase in sales figures also showed that the sales levels for the three months leading up to August were 0.8% lower than in the previous three months. Reports have also suggested that with the financial crisis facing the nation deepening and consumers being faced with ever increasing costs and bills it was more than likely that sales levels would drop back down again very quickly.

One economist stated: “With consumer confidence plunging in the wake of soaring inflation, falling asset values and rising unemployment the official retail sales will inevitably correct lower.”

Many industry experts have blamed lower levels of consumer spending on factors such as rising costs, bad weather, and rocketing inflation.