Wet UK June Puts Off Consumers

By Stewart Douglas

Official figures released today have shown a slower increase in retail sales over June, throughout the UK.

Expert analysts put much of the sluggish increase down to bad weather, with records suggesting June has been the wettest ever.

The poor weather conditions are suggested to have dissuaded retail customers from their usual spending habits.

The figures, delivered by the Office for National Statistics today, show a rise of 0.2% in consumer sales over June, compared to 0.4% just a month earlier, as part of a wider 3.4% increase on the year.

This would suggest a fall in growth, and continued suppressed consumer spending would inevitably have the effect of reducing inflation pressures within the economy.

However, it is thought that the low level of the cutback in consumer spending, coupled with the current strength of economic growth would be unlikely to put a stop to the inflation the Bank of England are so desparate to control.

The figures produced by the Office for National Statistics reflected a fall in supermarket spending, yet an increase in department store shopping as summer sales were opened earlier than in previous years.

Analyst predictions still remain that interest rates will rise through 6% from their current 5.75%, as the Bank of England strive to dampen the current inflation-inducing growth.

The downturn in weather of late has been a factor in the reducing level of consumer spending, analysts suggest, as more and more people are opting to stay away from the high street in the cold and rain.

However, despite the poor weather conditions and the tightening of income through increasing interest rates, inflation-driving demand still appears strong, suggesting that increases may very well be on the way.

Consumer demand and credit availability are continuing to present potential problems for the health of the UK economy.