UK retail sales volumes fell 0.1% in December, according to seasonally adjusted data that reinforced expectations that the overall economy suffered another relapse in the fourth quarter of last year.
The month-on-month dip, revealed yesterday in figures from the Office for National Statistics (ONS), contrasted with economists' consensus forecast of a 0.2% rise.
The data provided confirmation the key festive trading period was tough for the retail sector, amid weak consumer confidence. Entertainment goods retailer HMV and photographic chain Jessops have collapsed in recent days.
UK retail sales volumes had been flat between October and November. And, comparing the three months to December with the third quarter of 2012, retail sales volumes were down 0.6%.
Sales volumes last month were up only 0.3% on December 2011, the weakest year-on-year growth since April.
Excluding fuel, volumes fell by 0.3% month-on-month in December. The ONS said non-food sales, the more discretionary element of consumer spending, dropped 0.7% during December. Food sales fell 0.3%. Household goods sales tumbled 3% – the sharpest monthly drop in this category since January 2010.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Retail sales volumes fell marginally in the key month of December, which was not only disappointing and problematic for many retailers but may well have sealed a renewed dip in GDP (gross domestic product) in the fourth quarter of 2012.
"With consumer spending on services seemingly limited in the fourth quarter on top of the 0.6% drop in retail sales, it seems odds-on that personal expenditure contracted over the quarter. And consumer spending accounts for some 63% of GDP."
He forecasts ONS figures due next Friday will show GDP fell 0.2% in the fourth quarter.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article