–Sep Retail Sales +0.6% m/m; +0.6% y/y; median unch. m/m; +0.7% y/y
–Sep Retail Sales ex fuel +0.7% m/m; +0.4% y/y;median+0.2% m/m;+0.6% yy

LONDON (MNI) – Retail sales volumes rose unexpectedly on the month
in September, boosted by sales of computers and video games, figures
released by National Statistics revealed Thursday.

Retail sales volumes including auto fuel rose 0.6% on the month in
September to stand 0.6% above levels a year earlier. Analysts had
expected to see no growth in sales on the month, although had been
expecting a stronger rise of 0.7% on the year.

There were some downward revisions to previous data, with August
sales now estimated to have fallen 0.4% on the month compared with the
previously stated 0.2% decline. July volume growth is now see as flat
against the original +0.2% rise on the month.

In spite of the more buoyant than expected sales figures for
September, consumers face a tough outlook as they battle with falling
real incomes. Minutes of the October Monetary Policy Committee of the
Bank of England said that the “squeeze on households real income and
the fiscal consolidation were likely to continue to weigh on domestic
spending”, adding that overall growth in the fourth quarter was likely
to be flat.

Rising consumer price inflation has cut real income growth sharply
this year and members of the MPC have been out in force this week trying
to defend the latest decision to pump more money into the economy in
spite of the high current rate of inflation.

Deputy Governor Charles Bean added yesterday that as inflation
falls sharply next year the big squeeze on household incomes shouldn’t
be repeated next year.

Excluding auto-fuel, sales were up 0.7% on the month and by 0.4% on
the year. The monthly rise was larger than the median forecast for an
increase of 0.2% on the month, while the year-on-year figure was a
little below expectations.

There was a sharp rise in volumes at household goods stores, where
volumes rose 3.2% on the month, the largest increase since February
2010. National Statistics said sales were boosted by electrical
appliances, in particular sales of computers in the back-to-school
market.

There were also strong sales at music and video stores with bumper
sales of video games following some high profile games releases.

Non-specialised, department, stores saw sales growth of 1.4% also
helped by electrical appliance sales and strong promotions.

Other store sales rose 2.3% while non-store retailing and repair
volumes rose 1%.

The only non-food category to show a fall on the month was clothing
and footwear, where volumes fell 0.7%.

Overall non-food sales rose 1.4% on the month, while predominantly
food store volumes were flat.

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