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Official data released on Friday indicates a partial recovery in UK retail sales for August following a challenging July, although the growth fell slightly short of market


The Office for National Statistics (ONS) reported that retail sales volumes experienced a 1.4% annual decline in August, a notable improvement from the 3.1% drop recorded in July, which had initially been reported as 3.2%.

Market forecasts had anticipated a 1.2% decrease in August, according to consensus figures cited by FXStreet.

Compared to the previous month, retail sales volumes in August increased by 0.4%, in contrast to the 1.1% decline seen in July. However, August's performance was slightly below the market consensus, which had predicted a 0.5% rise.

The initially reported July decline had been 1.2%.

The ONS clarified that the monthly growth in sales was primarily driven by food and non-food stores, as July's inclement weather had negatively impacted clothing and supermarket food sales.

Non-store retailing, largely represented by online retailers, also experienced reduced sales in August, following the boost it received from wet weather and promotional activities in July.

August saw a decline in automotive fuel sales, with retailers attributing this to significant increases in petrol and diesel prices, as indicated by the ONS.

Excluding fuel, retail sales exhibited a 1.4% annual decrease, following a 3.3% drop in July. On a monthly basis, non-fuel sales showed a slight 0.6% increase in August, compared to a 1.4% decrease in July. Photo by Panhard, Wikimedia commons.