Falling wages aren’t stopping shoppers from hitting the high street

It looks like a case of recession postponed – again. Figures from the Office for National Statistics this morning show that retail sales volumes were up 0.4 per cent in August. These figures followed a shock fall of 1.2 per cent in July reported last month (and even this has been revised downwards to a fall of 1.1 per cent). Over the past three months – perhaps a better guide than month on month figures – sales volumes are up 0.3 per cent. Somehow, in spite of wages, which until last month had been falling in real terms, consumers are finding the means, and the will, to carry on spending.

Today’s figures are in many ways the mirror image of July’s. Food sales volumes were up 1.2 per cent, compared to a drop of 2.6 per cent in July. Non-food sales were up 0.6 per cent, compared with a fall of 1.2