–Aug Retail Sales -0.2% m/m; unch. y/y; median -0.1% m/m; unch. y/y
–Aug Retail Sales ex fuel -0.1% m/m; -0.1% y/y;median unch. m/m;-0.1 yy

LONDON (MNI) – Retail sales volumes fell on the month in August as
consumers continued to be squeezed by higher prices on the High Street
and declines in their real incomes, figures released by National
Statistics showed Thursday.

Retail sales volumes including auto fuel were down 0.2% on the
month in August and were flat on the year, the lowest annual outturn
since December 2010. Analysts had expected to see a slightly smaller
fall on the month of 0.1% and flat sales on the year.

Excluding auto-fuel, sales were down 0.1% on the month and by 0.1%
on the year. The monthly fall was a little larger than the median
forecast for flat sales on the month, while the year-on-year figure was
in-line.

National Statistics said that they were unable to quantify the
impact of the riots which took place in a number of areas across the UK
on the sales data. Numerous shops in parts of London and other major
cities were forced to close early for a number of days during August.

A spokesperson said that while there was anecdotal evidence that
sales at some stores had been hit, there was also evidence from some
stores that they had benefited from other stores closing early as they
had picked up the trade.

Prices on the High Street continued to rise during August which is
likely to be curbing volumes. The implied retail sales deflator
excluding auto fuel rose to 3.3% in August from 3.1% in July, the
highest since October 1995. Clothing and footwear prices were up 4.2% on
the year, the highest since June 1991.

The minutes for the August Bank of England Monetary Policy
Committee meeting projected economic growth to remain weak in the near
term reflecting the continued squeeze on households’ real incomes.

During August, the volume of sales at predominantly food stores
fell 0.3% on the month, while sales at non-food stores fell 0.1%.

Within the non-food sector, sales at department stores declined
by 0.8% while other store sales were down 0.4%. Volumes at household
goods stores fell 0.2% on the month.

Textile, clothing and footwear was the only non-food category to
rise this month, posting a 0.5% increase.

Non-store retailing and repair, which includes internet and
catalogue sales, rose 0.7% on the month.

[TOPICS: MT$$$$,M$B$$$,MABDS$]