UK Retail Sales Rise Unexpectedly; Consumer Confidence Improves

(RTTNews) - UK retail sales grew unexpectedly in September amid strong expansion in non-store retailing, data from the Office for National Statistics showed Friday.

Retail sales advanced 0.5 percent in September from the previous month, confounding expectations for a decline of 0.2 percent. Sales had climbed 0.6 percent in August. The increase marked the fourth consecutive rise and took the total volume to the highest level since July 2022.

Excluding auto fuel, retail sales growth was 0.6 percent compared to 1.0 percent in August.

The ONS said computer and telecommunications retailers' sales volumes grew strongly alongside continued growth among non-store retailers, where online jewellers reported strong demand for gold.

On a yearly basis, retail sales volume grew at a faster pace of 1.5 percent after rising 0.7 percent in August. The rate was also better than forecast of 0.6 percent.

Excluding auto fuel, retail sales posted an annual growth of 2.3 percent, following August's 1.3 percent rise.

In the third quarter, retail sales increased 0.9 percent from the previous quarter as good weather in July and August boosted clothing sales and non-store retailers showed sustained monthly rises over both quarters.

Elsewhere, survey results from market research group GfK showed that the British consumer sentiment improved moderately in October.

The consumer confidence index rose to -17 from -19 in September. Four measures were up and one was down from the previous month.

"After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money when discounts are most attractive," Consumer Insights Director at GfK Neil Bellamy said.