British retail sales rose by a stronger-than-expected 0.5% in August as warm weather encouraged shoppers to spend, the Office for National Statistics (ONS) said on Friday. Economists polled by Reuters had predicted a smaller 0.3% rise.
Sales in July were revised slightly lower, showing a 0.5% gain instead of the previously reported 0.6%.
Clothing chains, department stores and other non-food retailers led last month’s growth, while food outlets such as butchers and bakeries also saw higher footfall. Sales volumes were 0.7% higher than a year earlier, the ONS said.
Over the three months to August, sales slipped 0.1% — a slower fall than the 0.6% decline recorded in the previous three-month period. “Non-food stores such as antiques dealers, auction houses and tech retailers had a weak spell, with fuel sales also down,” senior ONS statistician Hannah Finselbach said. “These were only partly offset by growth in online and clothing sales.”
Consumers remain under pressure from inflation, which held at 3.8% last month, with food prices still climbing faster than average. Market research group GfK reported on Friday that confidence dipped in September, while speculation about tax rises in finance minister Rachel Reeves’ November budget has added to uncertainty.
Major retailers, including Primark owner Associated British Foods and discounter Aldi UK, have recently warned that higher taxes could weigh on household spending in the months ahead.