Colder weather and price cuts prompted a pick-up in British retail sales during September, figures showed today.
The British Retail Consortium's (BRC) latest survey found like-for-like retail sales grew by a stronger-than-expected 3 per cent over the month - compared to 1.8 per cent in August - after wide-ranging price cuts tempted shoppers.
Consumers were undaunted by the credit crunch and the Northern Rock bank run. The survey covered the five weeks from August 26th to September 29th. Northern Rock's emergency funding agreement with the Bank of England emerged on September 14.
Although retail sales growth was stronger last month, the BRC warned that the five recent hikes in interest rates by the Bank of England were beginning to slow down consumer spending.
In the three months to September, the sector saw like-for-like sales growth of 2.1 per cent - compared to 2.5 per cent between April and June, and 3.5 per cent in the first quarter of the year.
The BRC survey found sales of white goods such as cookers and washing machines were "generally subdued". The BRC's survey also showed spending on electrical goods such as flat-screen TVs easing back compared to last year, although games consoles and laptops enjoyed a better showing.
PA