Retail sales in Great Britain fall as struggling households cut back
Latest negative economic update comes as John Healey prepares to announce budget next week Business live – latest updates Retail sales in Great Britain fell more steeply than expec
By The Guardian
Retail sales across Great Britain fell by 0.4% in September, according to the latest figures from the Office for National Statistics.
The decline was sharper than economists had expected. The consensus forecast had been for a 0.1% fall, following a revised 0.7% increase in sales volumes in August.
The ONS said the figures covered total sales, including automotive fuel. Sales volumes were also 0.8% higher than in September last year, although annual growth slowed from 2.7% in August.
Non-food stores recorded a 0.4% monthly fall. Clothing and footwear retailers, sports equipment shops and some household goods stores reported weaker trading.
Retailers attributed the decline in part to lower footfall and customers cutting back on spending. Online clothing businesses also said the unseasonably warm weather reduced demand for autumn and winter ranges.
Food store sales fell by 0.4% during the month, marking their weakest performance for four months.
The figures provide a fresh indication of pressure on household spending ahead of the Budget due to be announced by Chancellor John Healey next week.
Across the three months to September, non-food sales volumes were flat, while total retail sales volumes remained higher than in the previous three-month period.
The ONS said online sales fell by 0.4% in September after rising by 3% in August, but remained 6.8% above their level a year earlier.
Deloitte said the figures suggested consumers were tightening their purse strings as they assessed the effect of inflation, fuel and energy costs on household finances.