UK retail sales surge in August

Summer promotions and back-to-school shopping gave British retail sales an unexpected boost in August, official data showed, casting doubt on the extent of the consumer slowdown.

The UK Office for National Statistics said retail sales volumes rose 1.2 percent on the month to stand 3.3 percent higher than a year ago. Analysts had been expecting a decline on the month of 0.5 percent following a barrage of gloomy retail surveys.

The jump was driven largely by sales of clothes, helped by seasonal discounting, and shoes which got a boost as parents kitted out their children for the new school year.

Textiles, clothing and footwear sales rose 4.1 percent on the month to stand 8.8 percent higher than a year earlier.

The figures fly in the face of survey indicators which suggest Britons are tightening the purse strings in the face of falling house prices and rising inflation. A survey from the Confederation of British Industry showed retailers faced their most challenging conditions last month since its records began in 1983.

Separate official data showed Britain's public sector net borrowing last month rose to 10.4 billion pounds, the highest for a month of August since 1993.