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PRIVACY
Retail & Consumer

Retail period drops in August reflecting 'broader gloom'

"Mid-tier retailers may be among the first to feel the extra pinch should the economy show further signs of slowing."

(Image: PA)

A healthy retail period dipped in August as º£½ÇÊÓÆµ shoppers bought fewer goods than in July, figures show.

Retail sales fell by 0.2% month on month following a 0.4% increase in July, the Office for National Statistics (ONS) reported.

The ONS said non-store retailing was the "largest contributor to the fall, partially offsetting the strong growth reported last month for this sector".

Online sales as a proportion of all retailing fell to 19.7% from the 19.9% reported in July.

Three-monthly figures, however, show "moderate" sales growth of 0.6%.

Year on year, sales grew by 2.7% in August, down from 3.4% in July.

The ONS said this was "a slowdown compared to the stronger growth experienced earlier in the year which peaked at 6.7% in March".

Philipp Gutzwiller, head of retail at Lloyds Bank Commercial Banking, said: "These figures reflect the broader gloom, yet º£½ÇÊÓÆµ retailers are pushing through with relative gusto as they prepare for the busiest trading period of the year.