Retail sales in the UK unexpectedly saw a rise in September driven by the demand for consumer technology, providing a welcomed lift for the new government amidst concerns of tax increases in the upcoming budget set for this month.
The Office for National Statistics (ONS) reported a 0.3% increase in the volume of goods sold in stores and online. Despite showing a slower growth pace compared to the 1% surge in the previous month, the figure marked the third consecutive monthly rise and surpassed economists’ expectations of a 0.4% decline.
Senior statistician Hannah Finselbach of the ONS highlighted the notable growth in tech stores’ sales, partially offsetting a downturn in supermarket sales attributed to adverse weather conditions and consumer cutbacks on luxury food items.
The unexpected uptick in retail sales, particularly in consumer tech, provides some relief for Prime Minister Keir Starmer’s administration, which has faced criticism for its economic outlook and warnings of impending fiscal measures.
In addition, retail sales volumes also surged by 3.9% on an annual basis, representing the most robust growth since February 2022. The increase has brought the volumes to their peak in over two years, sitting just 0.2% shy of pre-pandemic levels.
