UK retail sales post surprise 0.5% fall

UK retail sales fell by 0.5% in August, surprising economists who had expected a 0.3% rise.

This decline is the first time retail sales have fallen since January. However, on a quarterly basis sales were up in terms of both volume, up 0.7%, and value, up 2.3%. The seasonally adjusted value of retail sales was up 1.9% between August 2009 and 2010, while volumes rose 0.4% year on year. Sterling plummeted following the data's release, as economists warned the negative picture of consumer spending could fuel fears of a double dip. The pound fell nearly half a cent against the dollar in trading this morning. World First economist Jeremy Cook says the data is a blow to re...