Retail sales volumes fell by 0.1 per cent month-on-month in December , according to the latest data from the Office for National Statistics (ONS).

The consensus estimate had been for an increase of 0.2%.

Economists at Barclays Research highlight that nominal sales were equally subdued. Thus, total sales fell by 0.1% month-on-month and core sales fell by 0.3%. The less volatile quarterly measures also suggested a significant slowdown and a sustained weakness during the fourth quarter they add. Here total sales fell by 0.1% and core sales rose by only 0.1%. The growth rate of the implied price deflator picked up slightly to 0.6% year-on-year (from 0.4% previously), "but remains subdued compared with its reading during 2011 and the start of 2012," they said.

Versus the same period a year ago volumes rose by 0.3%. With the exception of December 2010, when retail sales fell sharply as a result of harsh winter weather, the 0.3% year-on-year increase in the quantity bought was the lowest year-on-year growth for the month of December since 1998 (-0.4%), government statisticians added.

Estimated weekly spend across all retailing was £8.5bn in December 2012 compared with £8.4bn in December 2011.

The proportion of sales made online fell at a slower rate between November and December than seen in previous years and were 1.2% higher compared with December 2011.

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