Retail sales rise in August despite hit to consumer confidence
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.
Economy
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.”
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