By Jon Sindreu
LONDON--Retail sales in the U.K. fell less than expected in
September and registered the 18th consecutive month of annual
growth.
The quantity bought in the retail industry increased by 2.7%
compared with September 2013, the Office for National Statistics
said on Thursday. Month-on-month, however, volumes were 0.3% lower
than in August.
While still pointing to a slight slowdown in the retail sector,
these figures are stronger than economists' forecasts and suggest
consumer spending--which boosted economic growth in Britain during
the second quarter--remained strong in the three months to
September. As the U.K.'s main trade partner, the eurozone, faces
increased economic woe, British recovery is highly dependent on its
own consumers.
The biggest contributor to the rise in sales was non-store
retailing--which include Internet retailers and street
markets--while the steepest fall was in clothing, where sales were
the lowest since April 2012. According to the ONS, consumers
delayed purchases of autumn and winter clothes due to the weather
being warmer than usual.
The overall increase in sales was brought about by lower prices.
Average store prices dropped 1.4% on the year, the largest decrease
in more than five years, with petrol stations and food stores
leading the fall. Stark competition amongst supermarket stores
during the year, the ONS said, has caused discounters to gain
market share and traditional retailers to slash prices.
This is consistent with headline inflation figures for September
released last month, which showed prices in the U.K. growing slower
than expected, driven by food and fuel.
Write to Jon Sindreu at jon.sindreu@wsj.com