UK retail sales fall more than expected as consumer confidence drops

investmentweek.co.uk:

Non-food stores sales volumes fell by 1.9% last month, which retailers attributed to continuing cost of living pressures.

The drop followed a 0.4% in August, and was mainly driven by online retailers, which were hit hardest with a 2.2% fall in sales volumes, according to the Office for National Statistics.

Non-food stores sales volumes fell by 1.9% last month, which retailers attributed to continuing cost of living pressures, alongside the unseasonably warm weather reducing sales of autumn-wear clothing.

This was partly offset by a 0.2% rise in food stores sales volumes rose by 0.2%, following a rise of 1.4% in August. Automotive fuel sales volumes also rebounded from a 1% drop the previous month, rising by 0.8%.

UK inflation remains steady at 6.7% in September

In the three months to September, sales volumes were down 0.8% compared to the previous three months, although the value of those sales were up 0.3%.

«Online retailers have been hit hardest, but that will be no relief for the high street. The trend is put down to the record-breaking warm weather in September, and could easily go into reverse,» said Nicholas Hyett, investment manager at Wealth Club.

«With evidence of higher prices in these numbers too, there is a lot of gloom where the UK shopper is concerned.»

Last month, UK inflation remained steady, with prices rising 6.7% year-on-year and matching the previous month's figure. The underlying data showed that food price inflation was slowing, but petrol prices continued to rise.

UK wage growth eases at 7.8% as job vacancies fall

Neil Birrell, chief investment officer at Premier Miton Investors, said that it was not surprising to see the consumer sector under pressure «given what has been thrown at it». 

However