British retail sales volumes fell less than expected in September but the annual rate of growth slowed to its weakest in two and a half years, official data shows today.
The Office for National Statistics said sales fell 0.4% last month, after a revised 1.1% gain in August, taking the annual rate down to 1.8% from 3.3%, the weakest since February 2006.
Analysts had expected a monthly fall of 0.9%and an annual rate of 2% growth.
The official data has been surprisingly resilient this year, given weak readings in other monthly surveys and gloomy news from retailers.
Today's data may indicate that official numbers are starting to reflect tougher conditions on the High Street and are likely to reinforce expectations that interest rates will fall next month.
The ONS, which warns that monthly growth rates are volatile, said the underlying trend in retail sales volume was of a slowing in activity and negligible growth in the most recent period.
It said September's fall was driven by weakness in clothing and household goods sales, suggesting that consumers are curbing spending as living costs soar and credit conditions tighten.
Sales at food stores in the three months to September were 0.1% lower than a year ago, the lowest since the series began in 1986. Sales at non-specialised stores, which includes department stores, slumped 2.4% on the year, the weakest since May 1992.
Still, retailers put up their prices last month, with the deflator rising to 1% on the year from 0.9% in August.
