Shoppers keep their wallets open as summer spree rolls on regardless

UK SHOPPERS are still spending and defying the gloomy mood music from retailers, official figures showed today.

Despite a glut of bad news, including a profits wipeout at John Lewis, retail sales grew 0.3% last month. That was slower than the 0.9% splurge seen in July, but still better than the City expected.

Household goods stores were the big winners, with the fastest growth in two years offsetting falling food and clothing sales. But economists warn petrol prices are squeezing households, with a 10% rise since March, and inflation unexpectedly rose to 2.7% over the month.

ING’s James Smith said: “With incomes still under pressure, and consumer caution only likely to build as ‘no deal’ Brexit warnings multiply, we think the high street faces a challenging autumn.

“Faced with the risk that economic momentum could stall further as we approach March 2019, we think the Bank of England will keep rates on hold until at least May 2019.”