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Retail sales see August recovery UK retail sales remain 'robust'
(20 minutes later)
UK retail sales rose by 0.3% in August, official figures have shown, taking the annual rate of growth to 4.3%. UK retail sales remained steady in August, official figures have shown, with shoppers apparently undeterred by last month's interest rate rise.
The Office for National Statistics (ONS) also revised July's sales figure upwards from a 0.3% fall to show no change on the month. The Office for National Statistics (ONS) said sales rose 0.3% in August, taking the annual growth rate to 4.3%.
August's figures were lifted by household goods sales and non-store retailing, but food store sales fell. Retail sales in the June to August period rose 1.5%, down slightly on the 1.9% rate in the three months to July.
Average prices were down by just 0.1% on a year ago - the smallest level of discounting since January 2002. However, the ONS said underlying growth remained "robust" compared with average sales growth in recent years.
August's figures were lifted by strong sales of household goods, which offset a 1.7% fall in sales at food stores.
Non-store sales, which include mail-order and internet shopping, jumped by 6.3% - the biggest monthly rise since December 2002.
The ONS also revised July's sales figure upwards to show no change on the month against an initial estimate of a 0.3% fall.
'Broadly healthy'
The ONS figures also showed the smallest level of discounting by retailers since January 2002, and analysts said this could reinforce worries at the Bank of England about rising inflationary pressures.
"Retail sales recovered as expected in August and the underlying trend remains broadly healthy, indicating that the interest rate at the beginning of the month did not have an immediate major dampening impact on the consumer," said Howard Archer, economist at analysts Global Insight.
"Overall, the retail sales data are likely to sustain expectations of a November interest rate hike."
However, Mr Archer said that he doubted that retail sales could maintain their strength, with consumers facing higher utility bills, a possible further rise in interest rates and increasing debt levels.