–Apr Retail Sales inc. fuel +0.3% m/m; +1.8% y/y
–Apr retail sales ex fuel +0.1% m/m; +3% y/y
–Retail sales above median forecast of +0.2% m/m; +1.8% y/y

LONDON (MNI) – Retail sales volumes rose moderately on the month in
April but on a trend basis growth is weakening, according to figures
released by National Statistics Thursday.

Retail sales volumes including auto fuel rose 0.3% on the month in
April and were up 1.8% on the year. The increase was slightly above the
median forecast for a rise of 0.2% on the month, but in-line with
expectations on the year.

Excluding auto fuel, retail sales grew by 0.1% on the month and by
3% on the year, above the median expectation for a fall of 0.3% on the
month and rise of 3.2% on the year.

While sales volume growth was relatively subdued on the month,
there were signs of rising inflationary pressures on the High Street.
The value of sales rose 1.1% on the month for total retail sales and
0.6% excluding auto fuel. This caused the retail sales deflator for
total and ex-auto fuel to increase to 2.8% and 1% respectively.

The textile, clothing and footwear deflator rose to -0.3% on the
year, still negative, but the highest since September 1998 when it was
flat. While National Statistics said they had no evidence that the
weakness in Sterling had pushed up clothing prices recently, it may well
be a possible reason.

On a trend basis, National Statistics said that trend growth in
sales volumes had weakened. In the three months to April sales volumes
were up 0.2% compared with the previous three months. While this was a
sharp rise from the previous month which showed a fall of 2%, this
included a massive decline in January due to poor weather which skewed
the data.

For the month of April sales at predominantly food stores were flat
on the month, while non-food sales were up 0.5%.

The picture within non-food was mixed, with clothing and footwear
volumes up 2% on the month and department store sales up 2.2%. These
gains were partially offset by a 1.7% fall in sales at household goods
stores and a 0.5% fall in other stores.

Non-store retailing volumes fell 2% on the month.

–London bureau: 00 44 207 634 1655; email: drobinson@marketnews.com

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