UK retail sales fall less than expected

Retail sales volumes fell last month and the annual rate of growth slowed to its weakest in two-and-a-half years, official data showed yesterday, showing consumers struggling as the economy slows.

The Office for National Statistics said sales fell 0.4 per cent last month, after a revised 1.1 per cent gain in August, taking the annual rate down to 1.8 per cent from 3.3 per cent, the weakest since February 2006.

Analysts had expected a monthly fall of 0.9 per cent and an annual rate of two per cent growth.

The official data has been surprisingly resilient this year given weak readings in other monthly surveys and gloomy news from retailers. Yesterday's figures may indicate that official numbers are starting to catch up and reflect tougher conditions.