(Bloomberg) — UK retail sales picked up pace in August, as consumers’ desire to take advantage of sunny weather and summer discounts offset gathering political and fiscal anxieties. The volume of goods sold in stores and online increased 1.0% after shoppers splashed out on food and clothing, the Office for National Statistics said on Friday.
The reading, which was stronger than the 0.4% increase expected by economists, follows a revised gain of 0.7% in the previous month.
“Retail sales rose in August as warmer weather and end-of-season promotions helped to boost sales, most notably for clothing and food shops,” ONS Chief Economist Grant Fitzner said. “Retail sales have also increased across the three-month and annual period, following strong growth from online retailers.” The figures suggest British consumers were optimistic in August despite a wave of anti-immigrant riots that gripped parts of England earlier in the month and Prime Minister Keir Starmer’s warnings of tough fiscal decisions ahead.
Separate data released earlier on Friday showed consumer confidence turning negative in September, which research firm GfK attributed to concerns about the Labour government’s tax and spending plans. “While consumers are showing a willingness to spend on essential and semi-discretionary categories, consumer confidence has dropped likely reflected in deferring the purchase of big-ticket items,” said Tom Youldon, a partner at McKinsey. Nonetheless, households have .