LONDON: British retail sales grew in July at a weaker pace than expected, according to official data on Thursday.
Separate government finances data showed an unexpected deficit in July for the second year running, continuing the weak start to this tax year and leaving the government more catching up to do to meet its fiscal goals.
Retail sales volumes rose 0.1 percent on the month to show 2.6 percent growth on the year, according to the Office for National Statistics.
Economists had expected retail sales to edge up 0.4 percent on the month.
The ONS said the biggest downward pressure on retail sales came from non-store retailing and petrol stations.
Britain's consumers have been the main driver of the country's economic recovery which began last year, helped in part by low levels of inflation that has eased the pressure on their spending power.
Wage growth, however, remains very weak.
Prices in stores fell 0.9 percent after being flat in June.
A survey from the British retail Consortium earlier this month showed British annual retail sales growth quickened in July.
The ONS said public sector finances, excluding financial sector interventions, deficit of 239 million pounds compared with a deficit 1.047 billion in July 2013.
Economists polled by Reuters had expected a small surplus of 50 million pounds.
Usually public finances for the month of July show a surplus due to tax payments.
Stripping out the effect of cash transfers from the Bank of England, the 2014/15 deficit to date was 37 billion pounds, 5.1 percent higher than at the same point a year ago.
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