Retail sales drop year-on-year

Corrugated bottom approaches.

ONS statistics released today show that, retail sales in January 2013 have fallen in quantity by 0.6 per cent year-on-year, the first year-on-year contraction since August 2011. The three-month trend remains positive, with the most recent quarter up 0.1 per cent on the same quarter last year. The value of retail sales is also on a downward trend, with the month-on-month and quarter-on-quarter sales declining.

The ONS explains that "the timeliness of these retail sales statistics, which are published just two weeks after the end of each month, makes them an important early economic indicator", and this month, they indicate a worrying decline in consumer spending. That said, compared to last January, which saw a 1.6 per cent decline year-on-year amid snowmaggedon, the news could be much worse.

This data must be read in conjunction with the earlier PMI indicators, which suggested a contraction in construction but growth in manufacturing and services. The UK economy is hovering, as it has for a while, on the border between growth and contraction. It will be the merest of technicalities as to whether we end up with a technical triple dip recession, but either way the picture is not rosy.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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