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Monday, 9 September, 2002, 23:27 GMT 00:27 UK
UK shopping boom roars on
Fears of a High Street slowdown have been growing
High street spending grew at its fastest rate for five months in August, a survey by the British Retail Consortium (BRC) has suggested.

Home improvements appear to have boosted sales as demand for household furniture and floor coverings was particularly strong, according to the BRC.

However, the industry body said there was strong sales growth for most types of goods.

The value of sales during August rose 4.8% on a year ago, using a like-for-like comparison which strips out changes in the number of stores, the BRC said.

Like-for-like sales jumped 3.8% from July.

Credit card debts

Measured over the three months of June, July and August, like-for-like sales growth raced up 4.2%, putting in a better performance than during the May, June and July period, when they increased 3.6%.

Total sales rose 7.6% in August compared with an increase of 6.5% in July.

Spending in the shops boomed earlier this year, delighting retailers but raising longer-term fears among economists that the credit-card fuelled spending spree would leave shoppers struggling with debts and the economy sagging.

Slowdown fears

Two influential surveys earlier this month have given a differing picture of the High Street's health.

One showed expansion for the eighth month in a row in August, but at a slower rate than before.

A second report raised fears that High Street spending might have peaked and that some of the gloomier forecasts were being realised.

But economists were not worried for long, pointing out that sales levels remained as good as, or better than, a year ago at 70% of stores.

Will the UK economy feel the impact of the US slowdown?

Economic indicators

Analysis

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See also:

05 Sep 02 | Business
03 Sep 02 | Business
14 Aug 02 | Business
06 Jun 02 | Business
01 May 02 | Business
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