UK retail sales enjoyed unexpected surge in October

UK retail sales surged far more than economists expected in October as cooler weather boosted spending on winter fashion lines, sending clothing and footwear sales to the biggest increase in more than 2½ years.

The volume of goods sold in shops and online jumped 1.9 per cent from September, when they rose 0.1 per cent, the UK Office for National Statistics said on Thursday.

Sales excluding car fuel jumped 2 per cent. Both were the strongest since July.

“Cooler temperatures in October boosted clothing sales as shoppers took their cue to purchase winter clothing, while the supermarkets benefited from Halloween,” said ONS statistician Kate Davies.

“This has also coincided with the strongest growth in internet sales seen for five years.”

Robust health

The figures suggest the British consumer remains in robust health after driving the economy to unexpectedly strong growth in the three months following the Brexit vote.

However, there are questions over how long that will last. Employment growth is slowing and household incomes are coming under growing pressure as the fall in the pound since the Brexit vote spurs inflation.

Clothing and footwear sales, which account for 12.5 per cent of total sales, jumped 5.1 per cent, the most since March 2014.

Sales of household goods gained 0.8 per cent and food sales climbed 0.8 per cent.Total sales surged 7.4 per cent in October from a year earlier, the biggest increase since April 2002.

A 26.8 per cent annual rise in the value of internet sales was the biggest since January 2011.

– (Bloomberg)