UK shoppers stay cautious as fuel costs bite, surveys show

By Reuters News

- British consumers kept a lid on spending in September, with much of their extra outlay going on fuel, while warm weather helped pubs but hurt clothing sales, according to surveys published on Tuesday.

The British Retail Consortium (BRC) trade body said its total retail sales measure rose by 1.3% compared with a year ago, picking up from 0.7% in August but below its 12-month average of 1.5%.

A separate survey from Barclays, based on consumer card spending data, showed a 2.0% annual increase in September, slowing from August's 2.1% rise.

It pointed to a rise in households' confidence around their finances but also some nerves ahead of finance minister John Healey's budget on October 28.


Here are the key points from the two surveys:

• The BRC said Food sales were up by 2.5% while non-food sales edged up by 0.3%

• Health and beauty had its strongest month of the year so far and toys were boosted by Pokemon's 30th anniversary products, but clothing and footwear had a weak month due to unseasonably warm weather

• "Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes," said BRC chief executive Helen Dickinson

• Barclays said essential spending was up by 2.5%, driven by a 17.3% jump in fuel spending after diesel prices hit record highs, while non-essential spending edged up by 1.8%

• Bars, pubs and clubs reported a 3.8% rise in spending, their fourth straight month of growth, as summer weather extended through most of September

• Barclays' measure of confidence in household finances rose to a seven-month high of 67%, but 68% of consumers said they were concerned about the budget's impact on their finances and 30% said they were cutting back on non-essential spending

• The BRC survey covered the period of August 30-October 3 while the Barclays spending data was August 22-September 24

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