Retail sales rise in August despite hit to consumer confidence
Retail sales rose 1% last month as warmer weather and end-of-season deals helped to boost supermarkets and clothes stores.
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
British retailers saw sales rise last month as summer discounts and warmer weather helped boost clothes stores and supermarkets, according to official estimates.
Retail sales volumes, which measure the quantity bought, rose by 1% in August, the Office for National Statistics (ONS) said.
It was ahead of most predictions, with a consensus of economists forecasting a 0.4% increase for the month, and comes despite a sharp fall in consumer confidence as households await next month’s autumn Budget.
The Office for National Statistics’ chief economist Grant Fitzner said: “Retail sales rose in August as warmer weather and end-of-season promotions helped to boost sales, most notably for clothing and food shops.
“Supermarkets, in particular, contributed to the largest annual rise for food sales since the summer of 2021.
“Looking at the broader picture, retail sales have also increased across the three month and annual period, following strong growth from online retailers. However, sales overall remain slightly below their pre-pandemic level.”
The figure follows a 0.7% rise in volumes in July, which was revised up from a previous estimate of a 0.5% increase, as discounting and sports events including the Euros boosted sales.
Sales volumes rose by 1.2% in the three months to August 2024, when compared with the three months to May 2024.
Meanwhile, GfK’s Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year.
Expectations for the general economy over the next 12 months fell by 12 points to minus 27, while the forecast for personal finances is down nine points to minus three.
Kris Hamer, director of insight at the British Retail Consortium, said: “With summer in full swing, sales growth picked up in August.
“Computing performed well as extensive summer discounting encouraged consumers to upgrade their tech, and students organised themselves for the new academic year.
“Food, cosmetics, and fashion sales also had a good month as people hosted family and friends for picnics and barbecues and prepared for summer holidays and other social events.
“Meanwhile, furniture and household goods failed to shine, as people opted to spend their money on experiences instead.
“Clearly, the high cost of living still bears down on consumers, meaning demand may dip further when energy bills rise once again in October.”
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.