LONDON (AP) — British retailer Marks & Spencer Group PLC said yesterday that sales rose 3.6 percent in the 13 weeks ending July 3, but it was cautious about the outlook for the rest of the year.

The figure does not account for new store space opened during the period. Including new stores, total UK sales were up 4.8 percent, with general merchandise up seven percent and food up 2.9 percent.

International sales were up 0.9 percent, affected by adverse currency movements and "difficult trading conditions in certain markets," the company said.

"We are cautious about the outlook for consumer confidence and spending," the company said, citing the government's austerity drive and next year's rise in sales tax.

Marks & Spencer shares were down 2.2 percent at 345 pence in early trading on the London Stock Exchange.

"The update is solid if a little unexciting, with sales marginally outpacing expectations," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.

"In the background, concerns still linger around the staff pension deficit and ongoing pressure on margins," Hunter added.