February retail sales jump 3.7%

ROMANTIC Londoners helped ensure tills in the capital's stores kept ringing in February, according to a new survey.

The report from the London Retail Consortium and KPMG showed High Street spending in central London slowed during the month, but less dramatically than in the rest of the country.

Retail sales were a punchy 3.7% higher than a year ago on a like-for-like basis compared with 4.1% in January, although the figure was flattered by last year's Central line shutdown.

The three-month trend rate of growth, ironing out monthly fluctuations, jumped from 1.3% to 2.6%. For Britain as a whole the annual figure slipped from 3.8% to 2.2%.

David Southwell, director of communications at the consortium, said: 'London's retailers performed better than those in the rest of the UK during February. There were good performances in Valentine's promotions and leisure products, showing that whatever the impact of last month's interest rate rise, it did not affect spending on romance or home entertainment in the capital.'

Footfall during the half-term week was lower in some areas with a high density of offices, but elsewhere tourist numbers held up well.

Today's report is the latest piece of evidence indicating that the two interest rate increases from the Bank of England, in November and February, have been largely shrugged off by shoppers. It will also reinforce expectations of more increases in the cost of borrowing in coming months, possibly as soon as April.