-Oct Retail Sales -0.8% m/m; +0.6% y/y; median -0.1% m/m; 1.6% y/y
-Oct Retail Sales ex-fuel -0.7% m/m; +1.1% y/y; median -0.1% m/m; 2% y/y
LONDON (MNI) – Retail sales fell sharply in October due to a drop
in sales at food and clothing and footwear stores, figures from National
Statistics showed Thursday.
While the sharp monthly fall in clothing and footwear volumes of
2.3% may have been exaggerated following a timing related boost in
September from school uniform sales, declines were seen across most
other categories suggesting general weakness.
On a trend basis underlying sales are pretty much flat against a
backdrop of a squeeze on households’ incomes and these data will only
add to the gloomy feel left following the publication of the BOE’s
Inflation Report yesterday.
Headline retail sales volumes fell 0.8% on the month and were up
0.6% on the year. This was well below the median for a fall of 0.1% on
the month and rise of 1.6% on the year. Excluding auto-fuel, sales fell
0.7% on the month and were up 1.1% on the year.
A decline in food sales, which make up 41% of overall sales, led
the drop, declining by 0.6% on the month. Food price inflation moved
higher in October to 2.7% on the year from 2% in September, which could
have hit volumes.
Sales at non-food stores were down 1% on the month, led by the fall
in clothing and footwear volumes, but all other categories here showed a
decline. Department store sales (non-specialised stores) fell 0.7% on
the month, household goods store sales fell 0.5% and other stores sale
were down 0.4%.
National Statistics confirmed that the fall in clothing and
footwear sales could have been due to base effects following the strong
rise seen last month.
The only category to show a rise was non-store retailing, largely
made up of internet retailers, where sales rose 1.3% on the month.
The implied fuel deflator increased 0.9% on the year, up from a
0.7% increase in September.
-London bureau: +44 20 7862 7491; email: puglow@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
