CORRECT: MNI DATA: UK Sep Retail Sales Lower; Q3 to Lift GDP

--Correcting value of internet sales fall in paragraph 10 

--Internet sales values -2.1% m/m in September

By Laurie Laird and Jamie Satchithanantham

     LONDON (MNI) - Retail sales volumes slumped in September, dampened by a

sharp fall in supermarket sales, but a strong performance in late summer leaves

the sector poised to contribute positively to gross domestic product in the

third quarter.

     Sales volumes fell by 0.8% between August and September, falling well short

of the median MNI median forecast of a 0.4% decline. On an annual basis, retail

sales increased by 3.0%, compared to the MNI median gain of 3.5%.

     July sales were revised to show a 0.4% monthly increase and a 3.4% annual

gain, slightly higher than the originally-reported 0.3% monthly increase and

3.3% yearly improvement.

     That lifted retail sales by 1.2% in the third quarter, which could add 0.06

percentage points to GDP, according to a National Statistics official. The

retail sector accounts for 5.4% of total output.

     Transactions at predominantly food retailers, which comprise 39% of total

sales, slumped by 1.5% last month, the biggest fall since October of 2015, with

weak supermarket sales accounting for much of the decline.

     The implied price deflator rose by 1.8% in the year to September, the

twenty-third straight increase, but below the peak of 3.3% recorded in September

of 2017, and the smallest rise since January of 2017, when the deflator

increased by an equal magnitude.

     Fuel prices accounted for much of the acceleration in retail inflation,

jumping by an annual rate of 10.3% in line with the recent rise in crude oil

prices. Excluding fuel, the implied deflator rose by just 0.9%, also the

smallest rise since January of 2017.

     Excluding fuel, sales slipped by 0.8% last month, rising by 3.2% over

September of 2017, below the MNI median forecast of a 0.4% fall on the month and

a 3.8% annual gain.

     August non-fuel sales were stronger than originally reported, rising by a

revised 0.5% from July and by 3.6% over August of 2017. Excluding fuel, sales

growth was originally reported as up 0.3% between July and August and a 3.5%

gain over the ninth month of 2017.

     Rampant growth in online sales shuddered to a halt in August, with internet

sales -- measured by value -- declining by 2.1% m/m (not 2.5% as in original

story), the sharpest fall since August of 2015. On-line non-store retailing,

which measures sales at internet-only shops, slumped by 4.5%, the biggest fall

since August of 2015.

     The September decline pushed internet sales down to 17.8% of total retail

transactions from 18.0% in August and a record 18.2% in July.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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