Retail sales post record fall in August

LONDON (Reuters) - Retail sales fell at their sharpest annual pace in at least a quarter of a century in August as the housing market contraction and wet weather hit retailers hard, a survey indicated on Thursday.

The Confederation of British Industry's distributive trades survey balance fell to -46, the lowest since the series began in 1983, from -36 in July.

Retailers were also very gloomy about the outlook for next month, with the expectations balance for September also hitting a series low of -42.

"This has been a summer that many retailers would rather forget. The downturn in the housing market is continuing to depress sales for those shops selling big-ticket items," said Andy Clarke, chairman of the CBI's survey panel.

Retailers still expected to raise prices sharply but at a slower rate, with the quarterly balance measuring this falling to +42 from +52 in May.