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Retail

UK Retail Sales Fall Unexpectedly

By square1
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UK Retail Sales Fall Unexpectedly

The UK's Office for National Statistics showed that the volume of retail sales dropped by 0.9% in August, mainly as a result for weaker demand for food.

The ONS said that supermarkets had been particularly busy in July during the hottest of the summer weather but that activity came back to more normal levels in August.

Food sales dropped 2.7% in August, and there was little evidence of the recent pickup in housing activity helping sales of household goods, which fell by 1.6%.

Over the three months to August, considered a better guide to consumer sentiment than one month's figures, retail sales were up by 1.7%.

Annual growth, comparing the latest quarter with the same three months in 2012, stood at 2.3%, the ONS said.

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The official figures also appear to demonstrate Britain's increasing love of online shopping. The ONS said non-store retail sales grew by 29% between August 2012 and August 2013 and that there had been a marked upward trend since the turn of the year.

Economist David Tinsley told the BBC that the drop in retail sales is largely down to the weather.

"Food sales were exceptionally strong in July... as the temperature improved markedly. While August was also pleasant, that level of sales was probably difficult to sustain," said Tinsley.

The retail sales figures are based on a monthly survey of 5,000 UK retailers, including all large retailers who employ 100 people or more.

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