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Halfords has cautioned that uncertainty about the economy and upcoming tax changes mean consumers are still holding back from making costlier purchases.

The retailer, which sells bicycles and car parts, said sales growth stalled over the six months to September 27, dipping 0.1pc.

This was partly due to there being significantly stronger demand during 2023, particularly for its garages which saw a big jump in vehicle-servicing sales.

Over the latest period, Halfords said there was still strong growth for services, maintenance and repairs, but tyre fitting was more flat with cost-conscious shoppers turning to budget ranges instead.

The company, which is expecting to make savings worth £30m this year, also said record levels of rainfall over the spring contributed to weaker retail sales, which dipped 0.7pc year-on-year, with leisure cycling demand coming under pressure.

However, shares were up 5.5pc as the retailer, which runs about 380 shops across the UK and nearly 550 garages, revealed there were signs of consumer sentiment improving.

It warned people were still spending cautiously, particularly on more expensive, so-called big ticket purchases.

Graham Stapleton, Halford’s chief executive, said consumers “remain cautious in their discretionary spending compounded by uncertainty around the contents of the upcoming autumn Budget”, but that the group was focused on “controlling the controllables”.