UK retail sales hit three year high as tech sales buoyed by iPhone release
The Office for National Statistics (ONS) said the total volume of retail sales has risen by 0.5% in September
The launch of the iPhone 17 earlier this month helped boost tech retail sales nationally, with UK retailers seeing an increase in sales for the fourth consecutive month.
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The retail sector saw sales hit a three year high this month, was also buoyed by strong demand for gold at online jewellers, amid a rise in its value.
The Office for National Statistics (ONS) said the total volume of retail sales is estimated to have risen by 0.5% in September.
It said this followed a 0.6% increase, which had been revised higher by the ONS.
The latest reading was a surprise increase after analysts predicted a decline of 0.2% for the month.
The figures are a positive signal in the face of concerns over a potential cooling in the UK economy.
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It highlighted that retail sales volumes improved to their highest total level since July 2022, strengthened by online retailers.
Non-store retail volumes, which predominantly covers online firms, rose by 1.5% for the month to strike the highest level since February 2022.
It said that online jewellers helped contribute to the increase, as brands reported a “strong demand for gold” amid a continued rise in gold prices in recent months.
Elsewhere, computer and telecommunications retailers saw stronger growth in September.
This category was boosted by product launches, including the new iPhone 17 which went on sale in September.
But food stores and department stores reported a drop in volumes over the month.
Kien Tan, senior retail adviser at PwC UK, said “shoppers still seem to be cautiously spending more” despite signs of pressure on consumer sentiment.
He added: “The autumnal weather certainly helped fashion sales, with clothing retailers continuing their run of outperformance and encouraging shoppers to refresh their wardrobes with the newest season trends.
“However, autumn showers also discouraged shoppers from visiting physical stores, as high street footfall fell and the proportion of sales online increased to 28%, which is the highest penetration of online retail since the end of the pandemic.”
Matt Swannell, chief economic adviser to the EY Item Club said: “The underlying trend in the retail sector this year has been one of modest improvements, and this is likely to continue over the next 18 months.
“Weaker wage growth, sticky inflation, tighter fiscal policy, and the lagged impact of past interest rate rises for a substantial minority of mortgagors mean we expect real household disposable income growth to slow.
“However, consumer confidence has improved over the past year, and there appears to be scope for households to mitigate some of the impact of weaker real income growth by saving less.”