UK retail sales beat expectations - ONS

18th Oct 2024 07:00

(Sharecast News) - UK retail sales ticked higher in September, beating expectations, as consumers splashed out on technology, official data showed on Friday.

According to the Office for National Statistics, month-on-month sales volumes rose 0.3%. Growth was slower than the 1% improvement seen in August, but was comfortably ahead of forecasts for a 0.3% decline.

Volumes were also at their highest index levels since July 2022.

Year-on-year, sales jumped 3.9%, the largest annual rise February 2022.

The best performing sector was computer and telecommunications, which helped partially offset a 2.4% decrease in supermarkets. Other non-foods, which includes tech, spiked 5.5%.

Cooler weather also helped support clothing and footwear sales.

Kris Hamer, director of insight at the British Retail Consortium, said: "Autumn led people to upgrade their wardrobe, as well as the last minute student dash for new computers, as the new academic year began.

"Big ticket items, such as furniture and other household goods, continued to take a hit from some consumers, such as those saving for Christmas or preferring to spend on experiences."

Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: "While consumers remain cost conscious, budgets are somewhat less strained that they were a year ago.

"However, consumer confidence remains fragile, particularly ahead of the Budget later this month, with uncertainty about the impact on household finances."