Fears for economy after sharper dip in Christmas retail sales

Mild weather and extended discounts blamed for worse than expected 1% decline in sales values from previous year

Spending in UK shops dropped last month, as mild weather and deep discounting dented takings for retailers over the key Christmas period. Official figures show that sales values fell at the fastest pace for more than six years, down 1% in December compared with the same time in 2014.

Mixed reports from big retailers since Christmas had pointed to weakness in UK retail sales, but the decline was sharper than City economists had forecast, contributing to fears of a slowdown in the wider economy at the end of 2015.

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