British retail sales failed to grow for a second month running in September, official data showed today, confounding expectations for a 0.5 per cent rise.
The Office for National Statistics said sales volumes were flat on the month, leaving them 2.4 per cent higher than a year ago. That was below analysts' forecasts for an annual increase of 2.8 per cent.
The figures suggest consumers remain reluctant to spend at a time when unemployment is rising and may reinforce worries over the strength of any economic recovery.
Figures tomorrow are expected to show Britain's economy grew in the third quarter after more than a year of decline.
Today's data showed textile, clothing and footwear sales volumes fell 0.5 per cent on the month while sales of non-specialised stores, which includes department stores, were up by 0.5 per cent.
Sales of household goods rose 0.3 per cent, taking the annual fall to 0.9 per cent, its smallest decline since December 2008.
The retail sales deflator fell to -0.5 per cent in September compared with a year ago, down from -0.4 per cent in August. That was the fourth consecutive month it has been negative, indicating retailers are still having to cut prices to lure in shoppers.
Reuters