Tuesday, March 11, 2014

UK retail sales slow in February after bumper January: BRC

(Reuters) - British retail sales slowed markedly in February after a robust January as food sales stagnated, an industry survey showed on Tuesday.

The British Retail Consortium (BRC), a trade body, said the total amount spent in stores last month was 0.7 percent higher than a year earlier, after a bumper 5.4 percent rise in January which was the biggest jump in nearly three years.

Consumer spending and housing have been the engines of Britain's surprisingly fast economic recovery since last year but Tuesday's figures underscore the difficulties of getting back to pre-recession peaks in early 2008.

"Overall sales were pretty flat, which serves as a reminder that recovery is far from certain," said David McCorquodale, head of retail at KPMG, which conducts the survey together with the BRC.

Home accessories, followed by furniture and flooring, were the top performers thanks to a recovery in Britain's housing market which has benefited from record low interest rates and government-sponsored schemes.

Average sales in the three months to February were 2.8 percent higher than a year earlier, with food sales only up 0.4 percent annually - the lowest three-month rolling average for food sales since records began in late 2008.

Official retail sales figures, which cover a broader range of retailers, for February are due on March 27. In contrast to the BRC's release, data from the Office of National Statistics showed an unexpectedly sharp fall in retail sales in January.

reuters.com

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