2014.10.2305:56:00UTC+00U.K. Sep Retail Sales Fall More Than Forecast

U.K. retail sales declined more than expected in September on a notable fall in non-food store sales.

Retail sales fell 0.3 percent in September from a month ago, when it rose 0.4 percent, the Office for National Statistics reported Thursday. This was the first fall in four months. Economists had forecast a 0.1 percent drop for September.

Food sales recovered in September, up 0.6 percent versus a 0.8 percent drop in August. Meanwhile, non-food sales declined 1.9 percent compared to a 1.6 percent rise in the prior month.

Sales excluding auto fuel also fell by 0.3 percent. Economists had forecast a flat growth for September after rising 0.3 percent in August.

On a yearly basis, retail sales volume including automotive fuel grew 2.7 percent in September following a 3.7 percent rise in August. This was the 18th consecutive annual growth, the longest period of sustained expansion since May 2008. But the rate of growth was weaker than an expected 2.9 percent rise.

Excluding automotive fuel, sales growth slowed to 3.1 percent from 4.4 percent in August. Sales were forecast to grow by 3.4 percent.

Online sales increased 10.1 percent in September from a year ago in September.