 Pre-Christmas sales have generally been poor, says the BRC |
High Street sales in October grew at their slowest rate since March, the latest monthly survey from the British Retail Consortium (BRC) reveals. Sales rose only 0.8% on a like-for-like basis from a year earlier, down on September's increase of 2.6%.
The BRC said it was "too early" to tell if it was a "more dramatic than usual pre-Christmas pause or the start of the consumer economy running out of steam".
But it warned the government and Bank of England "not to press consumers".
'Shoppers' nervous'
Bill Moyes, director general of the BRC, said the figures showed the Bank of England should tread carefully when considering further interest rate rises.
He added: "Shoppers' confidence remains fragile and they are increasingly nervous over the speculation about the strength of the economy."
Total sales grew 3.7% after expanding by 5.5% last month and by a high of 7.6% in April, the BRC said.
A dry and mild autumn meant reduced sales across many sectors, with electronic goods and winter clothing retailers hardest hit.
'Spirits dampened'
The half-term holiday helped cancel out some of the impact of the unseasonably warm weather, with sales of children's footwear doing well.
It was also a busy month for chemists with increases in sales of over-the-counter cold and flu cures.
Pre-Christmas sales had generally been poor, with the mail-order sector reporting a slow take up in its festive range, although gift items such as beauty products have been selling well.
Amanda Aldridge, head of retail at survey sponsor KPMG, said: "Some retailers professing cautious optimism in the run up to Christmas will have had their spirits dampened a little in October.
"They will have been made even more nervous by the base rate increase last week."