20 April 2001, 12:40  UK March retail sales-OVERVIEW and SNAPSHOTS reaction

--UK Mar retail sales volume unch on month; up 4.8% on yr
--UK Jan-Mar retail sales volume up 1.5% on qtr; up 4.7% on yr
--UK Mar retail sales growth weaker than expected
--UK Mar retail deflator +1.0% on yr, highest since Feb 99
--ONS: Rise in UK retail deflator due to higher food prices
--UK Mar mainly foodstore sales up 0.1% on mo, up 3.9% on year
--UK Mar mainly non-foodstore sales dn 0.4% on mo, +6.3% on year
--UK Mar retail sales value up 2.4% on month; up 5.8% on yr
--UK Jan-Mar retail sales value up 4.8% on year
--ONS: UK Mar sales figures show volumes slowing, prices rising
--UK Mar retail sales volume growth on mo lowest since Apr 2000
--UK Mar retail sales value growth on yr highest since May 1998
--ONS: UK sales value growth in food stores increased noticeably

London, April 20 (BridgeNews) - U.K. retail sales volumes growth unexpectedly came to a standstill in March, the weakest performance since April last year, according to figures published Friday by the Office for National Statistics. But at the same time shop prices rose by the fastest rate since February 1999 to ensure a healthy rate of value growth. Foot and mouth and poor weather were the main culprits for the price rises, which were limited to food, the ONS said.
* * * Sales volumes in March were flat on the month and up 4.8% on the year, compared with growth of 0.6% on the month and 5.8% on the year in April. Economists had expected growth of around 0.2% on the month and 5.3% on the year. the three-monthly rate was 1.5% on the previous three months and 4.7% on the same period a year earlier, compared with 1.5% and 4.6% respectively in February.
Sales values in March rose 2.4% on the month and 5.8% on the year, the highest annual rate since May 1998. The total value of sales was estimated at 19.520 billion sterling.
The ONS said: "The March figures indicate a slowing in volume growth through increased prices overall, whilst the value of spending growth remains strong."
The retail sales deflator, which measures price increases on the high street, rose to an annual rate of 1.0% in March, from 0.2% in February. Prior to last month it had been negative since April 1999. The ONS said the main upward pressure came from food prices, whilst goods prices continued to have a deflationary effect.
The ONS said: "The value of spending has increased in predominantly food stores, where price increases have also been apparent."
Sales volumes in food stores rose 0.1% on the month and 3.9% on the year, while non-food store sales fell 0.4% on the month and rose 6.3% on the year.
The figures present a mixed picture of the retail sector. On the one hand volumes growth has ground to a halt, but on the other value growth is healthy.
It suggests consumers are still highly price sensitive, although it may also belie a more general weakening in high street demand.

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