Retail sales fall by 0.9% in August

Retail sales fell by 0.9% in August compared with July, figures provided by the Office for National Statistics (ONS) have revealed.

The fall is unexpected with market commentators predicting a modest rise. Figures for July showed a 1.1% growth.

However the figures represent a 2.1% rise from August 2012, when the London Olympics and Paralympics had an impact on consumer spending, and continues the underlying pattern of growth seen since April 2013, according to the ONS.

The sale of goods remains high despite the fall. The main source of upward trends in the retail industry came from online, mail order and via stalls and markets, says the ONS.

The most significant factor for the fall comes from food sales which fell by 2.7% compared with July, following a strong performance in the previous month when sales were boosted by the warmer weather.

The prices of goods sold in the retail industry slowed from an annual increase of 1.8% in July 2013 to 1.6% in August 2013. Consistent with the Consumer Prices Index (CPI), the automotive fuel sector provided the largest contribution to this change with the prices of goods sold in this sector increasing by 1.5% compared with 2.6% in July 2013.