GREAT BRITAIN RETAILERS RECORD SEPTEMBER SALES FALL

Retail sales volumes in Great Britain fell by 0.4 per cent in September, according to the Office for National Statistics. Economists had forecast a 0.1 per cent decline. The ONS revised August’s increase to 0.7 per cent from its earlier estimate of 0.5 per cent. It recorded a 0.4 per cent fall in food sales and a 0.9 per cent drop in clothing volumes. Supermarket sales also fell after increases in July and August.

Online clothing retailers told the ONS that their autumn and winter ranges sold poorly during warm weather. The ONS cited Met Office data that ranked September as the joint-fourth warmest on record. Automotive fuel was the only major retail sector to record volume growth during the month. Across the third quarter, the ONS reported a 0.7 per cent rise in sales volumes against the previous three months, which it attributed to fuel and food stores. Its separate figures put September inflation at 3.5 per cent, up from 3.1 per cent in August.

GfK’s consumer confidence index fell 11 points to -24, though the accounts identify the month of that fall as either September or October. GfK said expectations for the economy and intentions to make major purchases each fell by 14 points. Nicholas Found of Retail Economics said: “September marked a clear softening in retail momentum.” Paul Dales of Capital Economics said the fall in confidence and retail sales came as retailers approached the festive period. Retail bosses have urged the government to change business rates and employer National Insurance contributions ahead of the Budget.