: Yui Mok/PA Wire
Retail sales slumped last month, official figures show, as shoppers cut back on spending in supermarkets.
Sales volumes expanded by 0.3pc in September, following a rise of 1pc in August, according to the Office for National Statistics (ONS).
It was the weakest growth since a decline of 0.9pc in June but it was better than a 0.4pc decline expected by economists.
Supermarkets sales volumes fell by 2.4pc during the month, leading to the largest month-on-month fall for food stores this year.
Retailers blamed poor weather and consumers continuing to cut back on luxury food items, according to the ONS.
It comes as Chancellor Rachel Reeves prepares to raise taxes as part of a £40bn plan to shore up the public finances.
Read the latest updates below.
Economists are impressed with the 0.3pc rise in retail sales, which was better than a forecast decline of 0.4pc:
FYI, UK #retail sales volumes rose 0.3% in Septembernot much but the markets had expected a 0.3% fall.Another reminder then that the economic recovery still has plenty of positive momentumand is now more broadly baseddespite the #Budget worries ???? pic.twitter/isrpQBcyq1
Decent beat to expectations for UK retail sales in September (+0.3% MoM; +4.0% YoY). The 2022/23 volume decline has now unwound, albeit sales volumes only back to 2019 levels. Still a cautious consumer recovery amidst high household savings rate that was at 11% in Q2 24. pic.twitter/YgApnVZ01x
Neil Birrell, chief investment officer at Premier Miton, said:
The wet weather didn’t deter the British public spending their money in September, as shown by stronger than expected retail sales.
This runs contrary to what consumer confidence data is telling us and indicates that wage growth is an important factor.
The consumer sector is very important within the economy and even though this is just one month’s data, it suggests the economy is more robust than was thought.
Although retail sales slowed down, the sector still performed far better than economists had expected in September.
Aled Patchett, head of consumer at Lloyds Bank, said:Milestone moments for households such as the return to school will have contributed to rising sales for retailers in September.
A rise in the energy price cap could see essential items remaining a focus for household spending this winter.
Retailers who can nimbly navigate consumer sentiment and essential spend will be best placed to take advantage of this traditionally golden quarter for this sector.
As retailers suffered a decline in sales in September, ONS senior statistician Hannah Finselbach said:
Retail sales grew in September as tech stores reported a notable rise in sales.
These were only partially offset by a poor month for supermarkets, where retailers said bad weather and households continuing to cut back on luxury food items hit sales.
Looking at the broader picture retail sales increased across the third quarter as a whole, with growth seen from all main shop types.
Retail sales slumped last month, official figures show, as shoppers cut back on spending in supermarkets.
Sales volumes expanded by 0.3pc in September, following a rise of 1pc in August, according to the Office for National Statistics (ONS).
It was the weakest growth since a decline of 0.9pc in June but it was better than a 0.4pc decline expected by economists.
Supermarkets sales volumes fell by 2.4pc during the month, leading to the largest month-on-month fall for food stores this year.
Retailers blamed poor weather and consumers continuing to cut back on luxury food items, according to the ONS.
It comes as Chancellor Rachel Reeves prepares to raise taxes as part of a £40bn plan to shore up the public finances.
Retail sales rose 0.3% in September 2024, following a rise of 1.0% in August 2024puters and telecoms stores grew strongly but were partly offset by falls in supermarkets.Read more ➡️ https://t.co/jP5Yn4lRHs pic.twitter/47ckvVvmsF
Thanks for joining me. We begin the day looking at the latest official retail sales figures, which show a slowdown in growth in September.
The drop was driven by a 2.4pc decline in sales volumes in supermarkets, which retailers blamed on poor weather and consumers cutting back.
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What happened overnight
China said its economy grew 4.6pc year-on-year in the third quarter, the slowest pace recorded in one and a half years.
Beijing’s National Bureau of Statistics put the figures down to a “complicated and severe external environment... as well as new problems of domestic economic development”.
However, retail sales and industrial output rose more than expected in September which boosted the markets.
Shares in Hong Kong and Shanghai edged up in the morning, while there were also gains in Tokyo thanks to a weaker yen.
Wellington, Taipei, Manila and Jakarta also rose, but Sydney, Singapore and Seoul edged down.
Gold rose past $2,700 to a new record.
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