UK consumer spending defies wider gloom
UK stores selling footwear and leather were among those reporting the sharpest sales gains in September, as the US terrorist attacks appeared to have little impact on the UK consumer’s determination to go on spending.
In its Distributive Trades Survey for the month, the Confederation of British Industry (CBI) reported that 62% of all retailers said sales were up in the month compared with a year ago, while only 8% recorded a fall. This gave a positive balance of 54%, compared with 49% recorded in August. Among shops selling footwear and leather, the figure was higher at almost three-quarters (74%).
Alastair Eperon, chairman of the CBI's panel and a director of Boots said: "The attacks in the US may have dented UK consumers' confidence but so far there is little evidence of any effect on their spending." However, the CBI said that despite the upbeat figures, retailers remained anxious about the future and the Bank of England still needed to cut interest rates again to boost the economy.
Mr Eperon added: "Today's results are more upbeat than many had feared. However, retailers remain anxious that external pressures, brought about by a global slowdown, will have an impact on their trading prospects. "So far consumers seem willing to spend, thereby helping to stave off an economy-wide recession. But with inflation under control, another cut in interest rates is needed to steer the economy through difficult times."
