Retail sales up in February boosted by food
Thursday, 20 Mar 2008 12:14
Food sales boosted overall retail sales in February
Retail sales rose slightly from January to February boosted by better volumes at food stores, the latest figures show, despite wide predictions of an economic slowdown.
The Office for National Statistics (ONS) said total sales volume rose one per cent from January to February and also rose by one per cent for the quarter, following 0.7 per cent growth in the three months to January.
Sales volume for food stores increased by 1.6 per cent, while sales volume for predominantly non-food stores increased by 0.5 per cent.
Sales for household goods stores decreased by 4.2 per cent, the largest decrease for this sector since February 2000, when it decreased by 4.5 per cent, reflecting a slowing housing market.
Higher household bills and an uncertain economic climate have taken their toll and recent surveys have shown
consumer confidence is at is lowest point in years.
But the figures show shoppers are returning after a weak Christmas.
Vicky Redwood from Capital Economics said: "February's surprisingly sharp jump in
retail sales suggests that rather than slowing, consumer spending growth is taking off again!
"Consumers can only battle against the perilous state of their finances for so long, but in the meantime, this clearly lengthens the odds of an April interest rate cut."
The average weekly value of sales in February was £4.9 billion, 6.6 per cent higher than in February 2007.
Sales by predominantly food stores rose by 7.6 per cent over the year, the largest rise for this sector since January 2002 (7.8 per cent).
This compares with 4.8 per cent growth for predominantly non-food stores and 13.4 per cent growth for the non-store retailing and repair sector.