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| Growth in UK retail sales stalls | Growth in UK retail sales stalls |
| (10 minutes later) | |
| UK retail sales were unchanged in August compared with the previous month, casting doubt on the strength of the recovery in consumer spending. | UK retail sales were unchanged in August compared with the previous month, casting doubt on the strength of the recovery in consumer spending. |
| Sales growth in July was also revised down, from 0.4% to 0.2%, the Office for National Statistics (ONS) said. | Sales growth in July was also revised down, from 0.4% to 0.2%, the Office for National Statistics (ONS) said. |
| Food sales growth was more than offset by falls in clothing and footwear. | Food sales growth was more than offset by falls in clothing and footwear. |
| To add to the retail gloom, department store John Lewis announced a fall in profits and predicted tough trading conditions in the coming months. | To add to the retail gloom, department store John Lewis announced a fall in profits and predicted tough trading conditions in the coming months. |
| Big falls | Big falls |
| Retail sales rose by 1.3% in June, and analysts had been expecting a third straight month of growth to reinforce hopes that the UK was emerging from recession - as hinted by other data. | Retail sales rose by 1.3% in June, and analysts had been expecting a third straight month of growth to reinforce hopes that the UK was emerging from recession - as hinted by other data. |
| ANALYSIS Hugh Pym, BBC chief economics correspondent | ANALYSIS Hugh Pym, BBC chief economics correspondent |
| The latest news from the High Street suggests that shoppers are not rushing out to celebrate any recovery which may be in the offing. | The latest news from the High Street suggests that shoppers are not rushing out to celebrate any recovery which may be in the offing. |
| There has been much talk about the recession ending and growth resuming. If it does, manufacturing will be the engine as exporters benefit from the weaker pound. | There has been much talk about the recession ending and growth resuming. If it does, manufacturing will be the engine as exporters benefit from the weaker pound. |
| The retail sales figures showed no increase in August. The underlying trend - covering the latest three months compared with the previous period - showed only a marginal increase in the growth rate. | The retail sales figures showed no increase in August. The underlying trend - covering the latest three months compared with the previous period - showed only a marginal increase in the growth rate. |
| Many consumers are using extra cashflow from lower mortage rates to pay off debt. | Many consumers are using extra cashflow from lower mortage rates to pay off debt. |
| Yes, the economic recovery may be underway. But you wouldn't necessarily know it from retailers. Growth in the third quarter of this year, if it materialises, may be marginal. B&Q profits from increase in DIY French Connection losses double | Yes, the economic recovery may be underway. But you wouldn't necessarily know it from retailers. Growth in the third quarter of this year, if it materialises, may be marginal. B&Q profits from increase in DIY French Connection losses double |
| There were signs of growth in some sectors. August food sales rose by 0.7%, while non-store retailing - which includes internet, telephone and mail order shopping - and repair shops saw sales grow by 1.1%. | There were signs of growth in some sectors. August food sales rose by 0.7%, while non-store retailing - which includes internet, telephone and mail order shopping - and repair shops saw sales grow by 1.1%. |
| But this was not enough to offset bigger falls in other areas. | But this was not enough to offset bigger falls in other areas. |
| All non-food sectors, apart from household goods, suffered declines in sales. The worst hit were textile, clothing and footwear shops, where sales dipped 1.3%. | All non-food sectors, apart from household goods, suffered declines in sales. The worst hit were textile, clothing and footwear shops, where sales dipped 1.3%. |
| Department store John Lewis added to the downbeat retail outlook when it announced a 20% fall in profits for the first half of the year, and said it expected the coming months to be tough. | Department store John Lewis added to the downbeat retail outlook when it announced a 20% fall in profits for the first half of the year, and said it expected the coming months to be tough. |
| "We expect trading conditions for the remainder of 2009 , and into 2010, to continue to be difficult," said chairman Charlie Mayfield. | "We expect trading conditions for the remainder of 2009 , and into 2010, to continue to be difficult," said chairman Charlie Mayfield. |
| He forecast a "slow, drawn-out economic recovery." | He forecast a "slow, drawn-out economic recovery." |
| Reflecting the growth the overall growth in food sales, however, the group did see stronger performance in its supermarket chain Waitrose. | Reflecting the growth the overall growth in food sales, however, the group did see stronger performance in its supermarket chain Waitrose. |
| 'Cautious spending' | 'Cautious spending' |
| Earlier this month, figures from the British Retail Consortium (BRC) suggested that like-for-like retail sales - which do not include new stores - fell in August, by 0.1%. | |
| "The official data confirms our own findings that the strong retail sales in June and July were not sustained," said BRC director general Stephen Robertson. | "The official data confirms our own findings that the strong retail sales in June and July were not sustained," said BRC director general Stephen Robertson. |
| "With unemployment rates at 14-year highs and predicted to increase into next year, most people are still very cautious about spending on expensive items - unless there are sufficient discounts." | "With unemployment rates at 14-year highs and predicted to increase into next year, most people are still very cautious about spending on expensive items - unless there are sufficient discounts." |
| Separately, a survey from business group, the CBI, found that orders for UK manufactured goods remained weak. | Separately, a survey from business group, the CBI, found that orders for UK manufactured goods remained weak. |
| Of the 555 manufacturers surveyed, 8% said orders were above normal levels, while 56% said they were below normal. | Of the 555 manufacturers surveyed, 8% said orders were above normal levels, while 56% said they were below normal. |
| Export orders were particularly low, despite the relative weakness of the pound, the CBI said. | Export orders were particularly low, despite the relative weakness of the pound, the CBI said. |