You are here: Home - Uncategorized -

Rate rises do not dampen UK consumer appetite

Written by:

The effect of rising interest rates has not yet percolated down to the spending habits of the British consumer, according to a report from the British Retail Consortium (BRC).

Sales of food and drink were strong in February, boosted by a move to healthy eating as sales of fresh fruit and vegetables rose at the expense of less healthy items like confectionery.

Like-for-like sales were up 3.3% on last year, the largest rise since mid-2006, with the recent bird flu scare failing to make much of an adverse impact on poultry sales.

BRC director general, Kevin Hawkins, said: “It would appear that the November and January interest rate increases have yet to work through to consumer spending.

“Clothing and big ticket categories in general, however, remained sluggish and growth remains heavily slanted towards the grocery sector.”

The figures endorse research from the Confederation of British Industry (CBI), released last week, which showed that retailers experienced an increase in their trade in February.

Total sales growth in February, which includes new shops that opened that month, picked up to 5.6% from 5.2%.

However, consumers were averse to buying clothing and top of the range electrical equipment like audio systems and DVD players, while large discounts were applied to household items to clear old stock.



Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Brits not saving enough due to heavy debt load

Less than 10% of people in Britain were happy with the amount they made as a saving and investment last...