UK retail sales in surprise upswing, fashion rises too

UK retail sales surprisingly rose last month, according to official data on Friday, suggesting reports that consumers are cautious ahead of possible tax rises in the forthcoming budget this month  may be wide of the mark.

It points to some optimism — perhaps — for the festive season ahead, although it’s far from certain that the season will be a golden one.

Back with September, sales volumes increased by 0.3%, not spectacular, but easily beating economists’ predictions of a 0.3% fall.

After stronger gains in both July and August, Q3 sales rose by 1.9%, the joint largest increase since mid-2021.

Non-food stores sales volumes – the total of department, clothing, household and other non-food stores – rose by 2.5% in September 2024, following a rise of 0.6% in August.

Telecoms and computers were the main drivers here, with the sector jumping by almost 35% in monthly terms in September, the Office for National Statistics said.

But in the key back-to-school month, clothing and footwear also boosted growth. And with the weather turning distinctly autumnal, consumers may well have been keen to update their wardrobes.

Online sales also rose last month and while fashion wasn’t exactly the star sector, it still rose. The value of total online spending rose by 1.3% during month on month and by 6.7% compared with September 2023.