Retail sales hit their highest level in more than three years last month, driven by purchases of gold and smartphones. <\/p>\n
Sales rose by 0.5 per cent between August and September, after a 0.7 per cent increase the previous month. The performance was better than the 0.2 per cent contraction forecast by City economists, who had expected colder weather to keep shoppers away from the high street. August\u2019s figure was also revised up from an initial estimate of 0.5 per cent. <\/p>\n
On an annual measure, retail sales are 1.7 per cent higher than at the same point last year and grew by 0.9 per cent in the three months to September. The expansion means that retail sales have grown for four consecutive months and are at the highest level in more than three years. <\/p>\n
The Office for National Statistics (ONS) said online sales at non-retail stores jumped by 3.8 per cent in the third quarter and 1.5 per cent on the month, reflecting a rise in people buying gold from online jewellers. Gold prices have surged to fresh records in the last two months with analysts speculating that retail investors are buying into the precious metal alongside large institutions like central banks. Sales of computers and telecoms also rose when Apple\u2019s new iPhone was released, the ONS said. <\/p>\n
Retail sales are an important indicator of consumer sentiment and provide an early look at the state of the economy based on spending patterns. A separate measure of consumer confidence rose two points this month, according to GfK\u2019s monthly survey of households<\/a>. <\/p>\n \u201cRetail sales rose quite strongly in the latest quarter and were at their highest level since summer 2022,\u201d Hannah Finselbach, senior statistician at the ONS, said. <\/p>\n \u201cAlthough food stores saw very little growth, good weather in July and August boosted sales of clothing, while online retailing also did well. Retail sales also grew over the month of September, with tech stores seeing a notable rise in sales, while online jewellers reported strong demand for gold.\u201d <\/p>\n Households have yet to show signs of pre-budget worries ahead of next month\u2019s statement, when the government is likely to announce tax rises<\/a>. Economists have said Labour\u2019s messaging around the public finances risks hitting consumer and business sentiment, leading to pull backs in spending and investment. <\/p>\n