ONS revises annual figure down as food sales suffer
UK retail sales for August remained unchanged on the previous month, as the Office for National Statistics revised downwards the annual figure for July.

The ONS said consumer demand remained weak but stable in August. However, food sales were worst hit during the month.

The year-on-year figures showed a 0.8 per cent increase in sales, the weakest growth since May, while July's decline of 0.3 per cent was revised to a bigger fall of 0.6 per cent. Annual growth was the lowest for more than six years.

However, underlying growth in the quarter rose 0.8 per cent, its highest since November.

The figures show that August's performance was driven by a 1.2 per cent month-on-month drop in food sales, the biggest fall in the sector for over two years, reflecting lower food sales by big supermarkets.

The ONS also pointed out that the three-monthly rate was likely to drop in September as June's strong increase was taken out of the equation. The figures will increase calls for another drop in interest rates to stimulate consumer spending.

Topics