- Retail sales volume in September 2014: down 0.3% on the month, up 2.7% on the year
- Average store prices fell by 1.4% in September compared with a year ago – the largest fall since July2009
Commenting on the retail sales figures for September 2014 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“The decline in retails sales confirms that the pace of growth in the UK economy is gradually slowing. Although longer term comparisons still show that the underlying trend is upward, the three month on three month growth rate of 0.3% was the slowest in 2014.
“In light of recent indicators, it would not be surprising if tomorrow’s preliminary GDP figure for the third quarter also shows a modest slowdown in growth. Deflation in the retail sector also intensified in September, confirming that inflationary pressures in the economy are easing, and there is no justification to think of an increase in interest rates just yet.
“This supports our view that the MPC should not consider any tightening in policy until well into next year. At the moment, the main priority should be to implement measures that counter signs of the slowdown in the economy – and to do everything possible to support businesses drive a strong recovery.”