Retail sales in the UK far exceeded expectations in August, with the Office of National Statistics declaring 2.5% yearly growth in the month.
This is up from 1.5% in July and above the 1.5% forecast. It also represents the strongest month of growth since February 2022.
ONS chief economist Grant Fitzner said: “Retail sales rose in August as warmer weather and end of season promotions helped to boost sales, most notably for clothing and food shops.
“Supermarkets, in particular, contributed to the largest annual rise for food sales since the summer of 2021.
“Looking at the broader picture, retail sales have also increased across the three-month and annual period, following strong growth from online retailers. However, sales overall remain slightly below their pre-pandemic level.”
The result contrasts with this morning’s GfK consumer confidence indicator, which fell to -20 in September from -13 in August, hitting the lowest level in six months.
Rob Wood, chief UK economist at Pantheon Macroeconomics, stated: “Granted the sharp drop in consumer confidence this morning, with households' major purchase intentions falling to -23 in September, from -13 in August, suggests a risk that retail sales pullback in September and more generally poses a downside challenge to our growth outlook.”