Underlying retail sales growth remains robust but the UK consumer’s appetite for spen- ding seems to be moderating.

The UK’s retailers enjoyed their best three months for almost a decade in the second quarter of the year, with the volume of goods sold up 1.6 per cent on the previous quarter. But after a 0.5 per cent fall in May, figures from the UK office for national statistics show sales volumes rose only 0.1 per cent between May and June. Compared with June last year, volumes were up 3.6 per cent.

Rob Wood of Berenberg Bank said while June’s numbers were slightly disappointing, they should not detract from the “very strong” quarte- rly numbers. “Consumers are continuing to spend, helped by strong employment growth. The UK is now cruising at above-trend growth rates, so the data is no longer universally surprising on the upside.”

Part of the reason for the disappointing June numbers was a 2 per cent month-on- month fall in clothing sales, which the statistics office sug- gested could be due to stores delaying promotions as the good weather endured, hitting volumes. – (Copyright The Financial Times Limited 2014)