Data published by the Office for National Statistics (ONS) showed that retail sales rose by 1.0% in August, accelerating compared to July (+0.7%, revised from +0.5%), and exceeding economists' forecasts (+0.4%). For the three-month period (through August), sales volumes rose by 1.2% when compared with the three months to May 2024 and by 1.0% when compared with the same period last year.
Meanwhile, in August, retail sales excluding fuel rose by 1.1% after an increase of 1.0% in July (revised from +0.7%). Consensus estimates suggested an increase of 0.5%.
The data also showed that, in annual terms, retail sales increased by 2.5% in August (the strongest growth since February 2022) after an increase of 1.5% in July (revised from +1.4%). When compared with their pre-coronavirus pandemic level in February 2020, volumes were down by 0.4%.
The ONS said that automotive fuel sales volumes rose by 0.8% in August. Non-food stores sales volumes, the total of department, clothing, household and other non-food stores, rose by 0.6% in August, with clothing stores having the largest impact. This follows a rise of 1.6% in July. Food stores sales volumes rose by 1.8%, following a rise of 0.3% in July. Compared with August 2023, sales volumes rose by 0.6%, the largest yearly increase since July 2021. This growth was mainly from supermarkets.
The data also showed the amount spent online, known as online spending values, remained unchanged on a monthly basis, but increased by 4.3% per annum. The proportion of online sales decreased to 27.6% from 27.8% in July.