Overview

• Retail volumes fell 0.1% in the three months to August versus the prior three months, easing from a 1.5% decline to July, according to the ONS.
• Monthly sales rose 0.5% in August, with sunny weather, the bank holiday and a rate cut credited for lifting demand.
• Clothing and non-store (online) retailing were the strongest areas, partly offsetting weaker sales in automotive fuel and computer and telecoms stores, the ONS said.
• Retailers are looking to the festive golden quarter for momentum, as executives report improving personal-finance sentiment but caution linked to potential tax rises.
• Industry groups warn that last autumn’s Budget added about £2bn in employer NI costs and say even continued sales growth would not offset the burden, keeping business confidence weak.