- David McCorquodale, head of retail at survey sponsor KPMG
Retail sales in the UK rebounded slightly in October following a sharp decline a month earlier, led by consumers' purchases of big-ticket items including furniture. The British Retail Consortium reported total retail spending in October was 1.4% higher compared to the same period last year, and up from the 0.8% drop in September, the sharpest annual decline since April 2012. On a like-for-like basis, a gauge that excludes changes in floor space, retail sales were flat, following the 2.1% fall in September. Clothing and footwear spending remained weak amid unseasonably warm weather, as shoppers felt no need to buy new winter clothes. Nevertheless, spending on furniture and other home goods appeared to be robust, indicating consumers will continue to drive UK's economic recovery, even if the pace of the growth has slowed recently.
The BRC also said earlier this month that shop prices in Britain had declined further in October and remained in deflationary territory for the 18th straight month, suggesting that underlying inflation was set to remain subdued. According to the latest official data, the rate of consumer price inflation slowed in September to 1.2%, the lowest level in five years. Inflation is predicted to slow further towards 1% at the end of this year.
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