UK retail sales up 0.6% in September, says ONS

Shopper Sales were up in September compared with August and a year ago

Retail sales grew by 0.6% in September compared with the previous month, following an unexpected fall in August.

The Office for National Statistics also said sales volumes had risen by 2.2% compared with September 2012, despite a fall of sales in supermarkets.

The retail sales figures are based on a monthly survey of 5,000 UK retailers.

The performance of the retail industry is seen as an indicator of the wider economy and the strength of consumer spending.

Analysis

Retail sales can be volatile - up one month, down the next and very sensitive to the weather. It's important to look at the underlying trend.

The third quarter, from July to September, reveals the strongest growth in retail sales since the pre-recession first quarter of 2008.

Inflation may be eating into household spending power but it doesn't seem to have dampened the appetite for shopping.

The latest figures add weight to the views of many analysts that growth will be higher in the third quarter than the 0.7% in the previous three months.

All will be revealed with the preliminary GDP figures published on October 25.

Furniture sales provided the biggest driver for the monthly rise in sales, owing to a pick-up in the housing market. Sales volumes in household goods stores grew by 3%.

Up and down

Retail sales have see-sawed in recent months. In July, the fine summer weather pushed sales up higher than expected, with barbecue food selling well.

Then, a month later, consumers reined in spending, particularly on food, leading to a drop in sales volumes.

In September, analysts had expected a rebound, but not to the degree seen in the latest official figures.

In addition to household goods, sales at clothing, footwear and textile retailers increased by 1.2% compared with August.

Ian Geddes, UK head of retail at Deloitte, said although confidence was rising, growth in wages remained "stubbornly low", so many consumers were "yet to benefit" from having more money.

He said pressure was on for retailers to get their product and brand "exactly right".

"Those who deliver highly desirable and creative products with distinctive and well-understood branding continue to reap the rewards," Mr Geddes added.

David Tinsley, UK economist at BNP Paribas, said he expected recovery in the housing market to "start to show up shortly".

But he said wages would have to rise before a more sustainable recovery could happen.

"We would not be surprised to see some softer patches in retail spending ahead," he added.

More on This Story

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Peter MatthiessenPeter and Paddy

    Remembering two of the greatest travel writers


  • Chinese GPRace ace

    Lewis Hamilton builds edge in F1 championship BBC Sport


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.