Retailers have said sales grew at their fastest rate since May this month and laid out expectations for further improvement in October.
The Confederation of British Industry’s (CBIs) monthly retail sales balance rose to 4% in September, against -27% in August.
This meant more retailers reported a rise in sales over the month than those that saw a decline.
Online sales swung from -15% to 18% over the month in the fastest growth since June 2023.
Retailers also saw prospects improving in October, with the balance of those expecting an uptick in sales over the month climbing to 5%, against previous expectations of -17%.
“After a challenging summer, retailers will welcome the modest growth in annual sales volumes this month,” CBI economist Martin Sartorius said.
Firms were seeing tailwinds from rising household incomes, he added, though some reported that spending habits were still under pressure from high inflation in recent years.
“In contrast to the recovery seen in the retail sector, wholesalers and motor traders continue to see a decline in sales volumes,” according to Sartorius.
He also said eyes across the industry were on next month’s Autumn Budget, with retailers “keen to see the government take long overdue action to address an antiquated business rates system that has become too complex”.