Retail sales hit highest levels since 2022

Retail sales volumes rose for a fourth consecutive month in September, as shoppers snapped up gold online and the latest tech gadgets. The Office for National Statistics reported a 0.5% monthly increase, beating expectations of a 0.2% fall.

Technology purchases underpinned the summer, helped by Nintendo’s long-awaited Switch 2 and Apple’s iPhone 17. Within non-store retailing, online jewellers saw strong demand for gold. Clothing also benefited from warm weather in July and August, although food stores showed little growth.

Across the quarter, sales volumes from July to September were 0.9% higher than in the previous three months. Online spending in the same period was 3.5% up on the prior quarter and 5% higher than a year earlier.

Retail sales volumes measure the quantity of goods sold, not the value. The latest figures are encouraging at a time of concern about a slowing economy, yet sentiment remains fragile. GfK’s long-running confidence survey suggests some shoppers are delaying purchases ahead of Black Friday.

The ONS compiles its estimates from all large retailers in Great Britain and a representative sample of smaller firms. Monthly figures tend to be more volatile than quarterly measures.

Official statistics directly feed government policy and guide the Bank of England on interest rates; however, a recent review criticised aspects of the ONS’s output quality. Like many national statistics bodies, the agency faces tight budgets and falling survey response rates.

“Although food stores saw very little growth, good weather in July and August boosted sales of clothing, while online retailing also did well,” said ONS senior statistician Hannah Finselbach.

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