UK retail sales unexpectedly picked up last month as laptops were snapped up for the start of term and new releases lifted video game sales, but economists warned that the underlying picture remained bleak.
The Office for National Statistics said sales volumes rose 0.6% on the month, above economists' forecasts for no growth and more than reversing a 0.4% fall in August. Sales volumes were up 0.6% on a year earlier, just below economists' forecasts for a 0.7% rise.
But sales fell -0.2% for the three months of July-September, using the less volatile three-month on three-month measure. Economists said that echoed downbeat reports from the high street, including a 94% crash in profits at Argos.
"A quick look at the data for previous months is enough to erode any hopes of a recovery on the high street. Spending over the summer months was revised down, meaning we are seeing an even weaker trend in spending than previously thought," said Chris Williamson, chief economist at Markit.
"With unemployment at 8.1% and set to rise further, the cost of living increasing at the fastest rate for 20 years and household confidence bruised by worries about the economic outlook at home and abroad, retail sales will inevitably be under pressure in coming months. Retailers are facing a challenging lead up to Christmas and the festive season may be one of the toughest yet that we've seen in recent memory."
The ONS said the sales at its "other stores" category were up 2.3% on the month, the biggest rise since October 2010, largely down to laptop sales and some big video game launches.
The warm weather, as expected, appeared to hurt clothes sales. The ONS said textile, clothing and footwear sales volumes fell more in September 2011 than in any other retail sector, down by 2.1% on a year earlier, the largest fall for more than three years.
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