UK economic slowdown? Don't panic

Fears of a rapid tailing off in retail spending look premature, especially given near-zero inflation, falling oil prices and booming car sales

It would be easy to assume from the latest retail sales figures that the UK economy is slowing down fast. After all, the amount of goods bought on high streets, in shopping centres, in petrol stations and online, was up just 0.1% in July following a drop of a similar size in June.

That conclusion looks a bit premature. Spending has certainly eased back from the turn of the year when shoppers were feeling the benefit of last autumn's crashing oil price. But as Martin Beck of the EY Item Club has noted, there was always a bit of a "sugar rush" feel to that spree.

Related: Shop sales rebound in July but petrol and groceries struggle