UK retail growth slows as spending review looms

Like-for-like UK sales growth slowed in September according to the British Retail Consortium (BRC).

The figure, which excludes new store openings, was 0.5% last month, down by 50% on August's 1% rate of growth.

The body said that consumer confidence was 'fragile' as the impact of the coalition's spending review grew nearer, and concern over cuts was hitting sales of some non-food items.

The BRC said consumers were cutting back on high ticket products such as bathrooms and fitted kitchens, as well as other items of household furniture.

It also revealed that for the three months from July to September, sales of non-food goods were down 0.4% from a year earlier although food sales were up 2.1% year on year.

Stephen Robertson, director general of the BRC, warned that the rise in food sales was being fuelled by a surge in food inflation, which currently stands at 4%.

'Sales growth continues to be poor. We've now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future.'

He claimed there was little evidence to suggest consumers were bringing forward expensive purchases to beat the rise in VAT to 20% from next January.

The government will outline its four year spending review on 20 October.