British retail sales accelerated in October, the British Retail Consortium (BRC)reported today, but economists said the pick-up would do little to allay concerns that Christmas consumer spending may be tame.
The BRC said like-for-like sales rose an annual 2.6 per cent in October, up slightly from 2.4 per cent in September.
However, rising interest rates, soaring household bills, stretched consumer debt levels and slowing wage growth have suggested shopping lists could be modest over the festive season.
Last week, the Confederation of British Industry said sales volumes fell at their sharpest rate in seven months.
Total sales, which include new floorspace, decelerated in October to be up 5 per cent on a year ago against 5.2 per cent in September.
The BRC said the three-month trend growth rate also eased, to 2.5 per cent on a like-for-like basis in October from 2.7 per cent in September.
Another rise in borrowing costs is expected on Thursday as the Bank of England tries to tame above-target inflation, and analysts say consumer sentiment is bound to suffer before Christmas and beyond.