Retail Sales Hold Up Better Than Expected...>

UK DATA: Retail Sales Hold Up Better Than Expected After Strong Summer 

-UK Aug Total Retail Sales +0.3% m/m; +3.3% y/y; +2.0% 3m/3m

-UK Aug Retail Sales Ex-Fuel +0.3% m/m; +3.5% y/y; +1.9% 3m/3m

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Retail sales growth decelerated in August after a bumper, upwardly 

revised July, but beat analysts' expectations of a 0.3% m/m drop. MNI 

previously highlighted a recent tendency for an upward data surprise in 

Aug, as had occured in each of the last two years. Fuelling the rise was 

a 4.5% m/m rise in h'hold goodsales, lifted by annecdotal evidence of 

heavy discounting of furniture, electrical goods and appliances. This 

more than offset 0.6% slide in food sales and 1.9% decline in clothing 

sales. Strong promotions of clothing were reversed in August, while 

back-to-school sales were captured by the seasonal adjustment factor. An 

unprecendented 3.6% m/m fall in September sales volumes would be needed 

for a flat Q3.