Wet weather in February hit retail firms as sales volumes in the sector failed to budge on the month before, according to new figures.
Data from the Office for National Statistics (ONS) shows sales volumes were flat in February, following an upwardly revised increase of 3.6 per cent in January.
The figures were actually slightly stronger than expected by analysts, who predicted a 0.4 per cent fall.
Looking over the past three months altogether, which also includes a sharp fall in December, retail sales volumes fell by 0.4 per cent.
“There was growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores. However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales,” ONS Senior Statistician Heather Bovill said.
“Many shops told us that the wet weather hit in store sales, with online instead seeing a boost,” she continued.
Looking forward, Aled Patchett, head of retail and consumer goods at Lloyds Bank, warned that consumers might still face higher prices over the coming months.
“Inflation that remains above the Bank of England’s two per cent target and ongoing wage pressures for retailers could both delay any price drops for consumers in the immediate term,” Patchett said.
The figures suggest that the UK consumer might be starting to feel the pinch from higher interest rates.
Figures out today showed that consumer confidence stalled in March, with GfK’s consumer confidence report at -21, unchanged on February’s reading.