YEAR-on-year growth in UK retail sales value slowed further in August, according to a survey which signals that hopes of an Olympic Games-related boost were not realised.

The British Retail Consortium (BRC) survey, published today, shows the total value of UK retail sales in August was up 1.6% on the same month of last year. This was adrift of respective year-on-year rates of increase of 3.5% and 2% in June and July.

Given the latest figure for annual UK consumer prices index inflation is 2.6%, the 1.6% year-on-year rise in sales value in August implies a fall in volumes.

Comparable figures for how Scottish retail sales fared last month are due on September 12.

July was, on the basis of figures from the Scottish Retail Consortium, the 16th consecutive month in which the year-on-year movement in sales value north of the Border had been poorer than that UK-wide. The total value of Scottish retail sales in July was down 0.7% on the same month in 2011, amid signs that Scottish consumers were cutting back sharply on food shopping.

The BRC noted a very sharp slowdown in the year-on-year pace of growth of online sales in the UK in August.

It noted that, excluding a 1% year-on-year fall in UK retail sales value in April attributed largely to the timing of Easter, the annual pace of increase in August was the poorest since a rate of 0.7% last November. The retail sales figures add to mounting evidence that, while the third quarter might see a technical rebound because there was an extra bank holiday for the Queen's Diamond Jubilee in June, the underlying economic position remains weak.

The BRC noted that, while demand for party food and drink was boosted by the London 2012 Olympics, sales of non-food goods were "really weak".

It added: "The feelgood factor from the Olympics failed to inspire spending."

Helen Dickinson, head of accountancy firm and survey sponsor KPMG's retail practice, said: "Retailers' hopes that the Olympics would inspire a pick-up in spending were dashed as shoppers stayed away from the high street and enjoyed the sporting spectacle from their armchairs."

Stephen Robertson, director-general of the BRC, said: "There's no evidence here of any Olympic boost to retail sales overall. Sadly, apart from April, (which was) distorted by Easter timings, August saw the worst sales growth this year. Hot weather and the Olympics did help sales of party food and drink but that was more than offset by a really weak performance for non-food goods. It's clear people were absorbed by the magnificent Olympics and had little interest in shopping, especially for major items."

He added: "Usually-reliable online sales suffered, putting in the worst sales growth since we started the measure four years ago.

"Some retailers told us online activity was particularly thin in the evenings. If people weren't watching television, they were more likely to be following the sport on PCs (personal computers) and mobile devices than shopping."

Looking ahead, Mr Robertson said: "As summer gives way to the all-important Christmas run-up, retailers will be hoping sales that didn't happen in August have been postponed and not lost entirely."

The BRC said that lower retail footfall in London in August had been "offset by a better performance in the rest of the country".

Ms Dickinson noted discretionary spending suffered in August, with sales of women's clothing, furniture, flooring and home-related items hit hardest.