Heatwave boosts high street sales

Soaring temperatures boosted sales of food, alcohol and clothing in July

Soaring temperatures boosted sales of food, alcohol and clothing in July to fuel hopes over the recovery in consumer spending.

Retail sales rose 1.1% in July on a month earlier and were up 3% on July 2012 - the steepest rise for two and a half years - driven by soaring sales at supermarkets and department stores.

The heatwave saw shoppers stock up on barbecue goods to drive food sales volumes 2.1% higher on a year earlier, the sharpest rise in more than two years, figures from the Office for National Statistics (ONS) showed.

The 1.1% gain was well ahead of economists' average hopes for a 0.7% month-on-month increase and will add to hopes that overall third-quarter GDP growth can exceed the 0.6% gain seen in the April to June quarter.

It was the third consecutive rise in month-on-month retail sales, following June's 0.2% increase.

The figures suggest a likely boost from the birth of Prince George and British sporting success, including Andy Murray's Wimbledon victory, Lions rugby, and Ashes cricket.

Department stores saw July sales surge 3.1% on a year earlier, while sales of textiles, clothing and footwear were up 1.4%.

Supermarkets also reported higher sales of garden furniture, although household goods stores were a rare weak spot, with sales falling 2.3% on a year earlier.

Month on month, there were dips in sales volumes across department stores and textile, clothing and footwear retailers, but supermarket sales grew 2.5%.

PA