London - UK retail sales stagnated for a second month in September as rising prices and warm weather hit demand for clothing.
The figures, from the Office for National Statistics on Thursday, also showed that sales excluding auto fuel were unchanged from August. Small increases on both measures had been expected by economists.
Clothing and footwear sales fell 2.8% after prices surged 5.2% on the month and Britain enjoyed one of the warmest Septembers on record. A strong July helped retail sales increase 1.8% in the three months through September, the best quarter since the end of 2014.
Confidence has remained “steady” since the June Brexit referendum, ONS statistician Kate Davies said. “There was some variation between store types; clothing sales saw a fall in the quantity bought in part due to rising prices and a warmer than average September.”
The figures suggest the economy is continuing to be driven by consumer spending, with retail sales contributing 0.1% to gross domestic product in the third quarter.
Consumers are expected to come under pressure as the weaker pound stokes inflation, however. Figures on Wednesday showed real wages growing at their slowest pace since early last year.
Sales of food and non-food both fell. Declines were offset by household goods, up 3.7%, and non-store sales, which gained 1.5%. Fuel sales were unchanged.
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