The British Retail Consortium (BRC) has reported a boom in consumer spending after figures released show shoppers have poured back into UK shops as the sun came out and after consumers had apparently been deterred by fears of war and recession earlier in the year.
The BRC said retail sales grew at three per cent on a like-for-like basis in June, double the 1.5 per cent recorded for May. Total retail sales grew 5.7 per cent, up from 4.3 per cent the month before.
Amanda Aldridge of the British Retail Consortium said: 'The good weather in June has boosted the consumer market. Food retailers have been watching ice cream, barbecue products and other fresh items fly out of the store.' HSBC economist Robert Prior said: 'The UK consumer is not showing any signs of a fundamental slowdown. Last week's rate cut might have been a bit unwise as it will encourage the massive move into debt by the consumer sector, which is storing up problems for the future.' Prior was also quick to warn of a potential downturn for the future. He said: 'We think there will be a consumer slowdown, but not until we move into 2004, and it is likely to be caused by rising unemployment.'