UK retail sales volumes fell sharply in October, official figures have revealed, signalling the revival in the consumer sector remains fragile.
The Office for National Statistics said yesterday that UK retail sales volumes had tumbled by 0.7% month-on-month on a seasonally-adjusted basis in October. News of the fall in sales wrong-footed the City, which had expected volumes in October to be unchanged from those in September.
Sales were no higher in October than in June.
In the textiles, clothing and footwear category, sales volumes dropped by 2.8% month-on-month in October, as unusually warm weather for the time of year reduced demand particularly for winter ranges.
However, the overall fall in retail sales in October did not merely reflect the impact of weather on demand for clothing.
Food sales fell by 0.1% month-on-month in October. And sales volumes in the household goods category dropped 1.2% between September and October.
Retail sales volumes in October were up 1.8% on the same month of last year. They had, in September, been up 2% year-on-year.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Even allowing for mild weather hitting clothing sales, the 0.7% drop in retail sales in October indicates that consumers are taking at least a temporary breather in their expenditure after spending at a robust rate during the third quarter.
"With purchasing power being limited by consumer price inflation running well above earnings growth for an extended period, it is likely that many people are feeling the need to rein in their spending at least temporarily, particularly if they want to build up their funds for spending over the Christmas period."
He added: "We suspect that consumers will keep spending at a reasonable pace going forward, but the upside is likely to be limited until earnings growth picks up appreciably from current levels."
Martin Beck, UK economist at consultancy Capital Economics, said: "October's surprise fall in retail sales volumes highlights that, despite the hype over the economic recovery, the revival in the consumer sector remains a fragile one.
"That said, October's disappointing outturn is hopefully only a temporary setback."
He added: "With unusually warm weather hitting purchases of winter clothing ranges, the fall in clothing sales in October should be compensated for now that the weather has turned more seasonal. Meanwhile, consumers may have cut back in order to spend more in the run-up to Christmas."
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