Retail sales suffered an all of a sudden sharp fall of zero.eight% in September, reversing a leap in August, in step with the Office for National Statistics.
It intended that third-quarter retail expansion slowed to a year-on-year fee of one.five%, its lowest since the second one quarter of 2013.
The figures come on the Bank of England contemplates its first rate of interest upward thrust in a decade.
Sterling fell as investors wager the information made drawing close fee upward thrust much less most likely.
Despite September’s sales fall, Kate Davies, ONS statistician, mentioned: “There is a continuation of the underlying trend of steady growth in sales volumes following a weak start to the year, and a background of generally rising prices.”
The ONS mentioned retail costs persisted to upward thrust throughout all retailer sorts and had been up three.three% from a yr previous, the absolute best year-on-year building up since March 2012.
The largest downward force on sales quantity and price in September used to be in non-food shops. Food shops additionally reported falls in each measures, however to a lesser stage than non-food retailers, the ONS mentioned.
Online sales values greater year-on-year by way of 14%, accounting for about 17% of all retail spending.
Ian Gilmartin, head of retail and wholesale at Barclays Corporate Banking, mentioned: “It’s important to avoid overstating the negatives in September’s retail sales, as retailers did manage to post year-on-year growth despite the range of headwinds they are battling currently.”
However, he mentioned September’s fall, following robust sales in August, used to be “worse than predicted”.
Neil Jones, Mizuho’s head of hedge fund forex sales in London, mentioned the retail information used to be “not encouraging”.
The price of pound fell right away after the figures had been launched, with sterling down nearly part a cent to $1.3126, suggesting investors consider a fee upward thrust subsequent month is much less most likely.
Bank governor Mark Carney has mentioned charges may pass up in the “relatively near term”, with many analysts anticipating a hike in November.
Alvin Tan, forex strategist at Societe Generale, mentioned that he nonetheless felt a fee upward thrust subsequent month used to be imaginable, however mentioned a 2nd upward thrust early subsequent yr used to be now not possible.
Ian Geddes, head of retail at Deloitte, mentioned a November fee upward thrust “could come at a challenging time for the retail sector”.
With emerging inflation and lengthening client debt, a fee hike simply because the business enters the important thing Christmas length could be “an additional headache for retailers”, he mentioned.