Good morning, and welcome to our ongoing coverage of business, financial markets, and the global economy.
Retail sales growth in Great Britain has slowed, with an increase in technology purchases offset by a reduction in supermarket spending. According to new data from the Office for National Statistics, sales volumes rose by 0.3% in September, down from 1.0% growth in August. This figure was higher than expected, as economists had forecasted a 0.3% decline for the month.
Computer and telecommunications retailers performed particularly well, possibly due to students purchasing PCs for the new school term, but this was counterbalanced by reduced food sales.
The Office for National Statistics indicates that other non-food stores saw the strongest growth, rising by 5.5% in September. The rise in retail sales in September suggests a positive trend despite the constant changes in consumer sentiment.
Senior statistician at ONS, Hannah Finselbach, noted that while technology stores reported notable increases in sales, supermarkets struggled due to adverse weather conditions and households prioritizing essential over luxury food items. Despite the dip in consumer confidence, broader retail sales performance in the third quarter reflected overall growth across all major retail sectors.
Today’s agenda includes Chancellor Rachel Reeves’s meetings with major City executives, the release of UK retail sales figures for September, UK insolvency statistics, and US data on building permits and housing starts.
Furthermore, Deloitte highlighted a significant rise in consumer confidence, but tempered it with the observation that people are still cautious about spending on more expensive items. The latest trends point towards a gradual recovery in spending patterns, with sales in non-food stores up 2.5% in September.
Overall, analysts like Neil Birrell from Premier Miton Investors see these developments as encouraging signals for the economy, suggesting resilience amid persistent inflation and economic pressures.
