Chamber Comments on Latest Retail Sales Figures

Retail sales figures released by the Office of National Statistics show that in August sales volumes fell 0.2% on the month, although the value of sales increased by 0.2%. Over the past year sales volumes have increased by 2.7% and values by 3.0%.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said:
“We expected a fall in the volume of sales in August, but the trend over the past year has been upward as inflation has fallen back and there has been an increase in employment, easing the squeeze on consumers.

"Non-food retailers’ discounting has helped to ease inflation and supported the growth in sales, but this has in turn put the squeeze on margins. Whilst this will challenge retail businesses, on the positive side the increased demand should help businesses in supply chains.

"However, the economy has remained weak and there are signs that employment growth is slowing, possibly leading to increased unemployment ahead.

"The window of opportunity for the Government to act and support the domestic economy through infrastructure investment is closing and there must be a greater sense of urgency to improve productivity, growth and job creation.”