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British retail sales fall in warm September

UK clothing, textile and footwear sales fell 7.8% in September
UK clothing, textile and footwear sales fell 7.8% in September

UK retail sales fell last month as unseasonably warm weather meant that shoppers delayed buying new coats and winter clothes. 

Store sales volumes fell by 0.3% in September compared to the month before, according to the Office for National Statistics (ONS). 

The worst performers last month came from clothing, textile and footwear sales which fell 7.8% compared to August, and 4.1% over the year. 

But taken over a 12-month period sales volumes rose 2.7% in September, the 18th consecutive month of year-on-year growth, the longest sustained period of expansion since May 2008. 

One UK economist said that if clothing sales had held steady retail sales would have grown by around 0.7%. 

Last month fashion retailer Next said slower demand for its autumn collection had led to slower sales, which if continued during October may mean lower full-year profits. 

The ONS added that average store prices fell by 1.4% compared to last year, the largest fall since July 2009. 

The biggest drivers were petrol price cuts, which were down 5.4% over the year, while the ongoing supermarket price war saw prices fall 0.3%, the biggest drop since December 2004. 

Overall retail sales volumes rose just 0.3% quarter-on-quarter in the third quarter of the year, down markedly from growth of 1.5% quarter-on-quarter in the second quarter. 

Many economists believe that the moderation in consumer spending in the third quarter will contribute to a slowing in UK gross domestic product (GDP). 

A first estimate of GDP in the third quarter is due to be released tomorrow, with economists expecting growth to have slowed to 0.7% from 0.9% in the second quarter.