UK retail sales grew more than expected in August as warmer weather boosted food and clothing sales, data from the Office for National Statistics showed on Friday.
Retail sales grew 1.0 percent on a monthly basis in August, faster than the 0.7 percent rise in July. Sales were forecast to climb moderately by 0.3 percent.
Excluding auto fuel, retail sales gained 1.1 percent on month, following a 1.0 percent rise in July. Economists had forecast an increase of 0.5 percent.
The ONS said some supermarkets and clothing retailers reported a boost because of warmer weather and end-of-season sales.
Food store sales advanced 1.8 percent and non-food store sales grew 0.6 percent from a month ago.
On a yearly basis, retail sales growth improved to 2.5 percent from 1.5 percent in July. This was the largest annual growth since February 2022 and stronger than the expected increase of 1.4 percent.
Likewise, excluding auto fuel, retail sales grew 2.3 percent after a 1.4 percent rise in the prior month. Sales were expected to grow only 1.1 percent.
A survey from the Gfk market research group showed that UK consumer confidence declined sharply in September. The confidence indicator posted -20 compared to -13 in August.
Todays data release provides some tentative evidence that the retail sector will return to growth in the third quarter and contribute to broader consumer spending growth, Capital Economics economist Ashley Webb said.
However, the fall in confidence highlights the risk that consumer spending will be restrained by the governments decision in the budget, he added.