UK Aug retail sales up monthly 0.3 pct despite slump in food sales

The UK's retailers enjoyed a solid August despite the biggest fall in food sales for over three years amid a slump after the World Cup, official figures showed today.
The office for National Statistics said sales, on a seasonally-adjusted basis, rose by 0.3 pct in August from the previous month, against expectations of a 0.4 pct rise.
It added that sales in July were unchanged from the previous month against the initial estimate of a 0.3 pct fall. As a result of the revision, retail sales have now showed no falls on a monthly basis since January.
On a year-on-year basis, retail sales in August grew by 4.3 pct, slightly above market expectations for a 4.2 pct rise. The equivalent July rate was revised up to show a 4.3 pct rise too from the original 4.0 pct estimate. The last time the annual rate was higher was December 2005's 4.4 pct.
Elsewhere, the statistics office said retail sales were 1.5 pct higher in the three months to August from the previous three month period, down from the 1.8 pct in the three months to July. Compared with a year ago, retail sales were 4.0 pct higher, equal to the July rate.
Analysis of the monthly figures showed that food store sales slumped by 1.7 pct, the biggest fall since January 2003.
A spokesman said it was less to do with the fall in temperatures in August and more to do with the fact that the month came after a very strong June and July as a result of the World Cup.
Offsetting the decline in food and drink sales was a 1.2 pct rise in non-food store sales, with household goods stores, such as furniture and electrical retailers, posting growth of 3.3 pct and 'other' non-food stores, such as sports shops and bookstores, showing growth of 1.0 pct.
Based on non-seasonally adjusted data, the average weekly value of retail sales in August was 4.70 bln stg, 4.2 pct higher than in August 2005, but down 2.2 pct from July.
Elsewhere, the statistics office said the implied deflator for August is showing prices down 0.1 pct over the year against the 0.5 pct decline recorded in July.