Official figures from the Office for National Statistics (ONS) show retail sales volumes were unchanged in September compared to the previous month as cautious shoppers held back on spending amid concerns that the UK was heading for a no-deal Brexit.
However, this was a slight improvement on the 0.3% decline seen in August and in line with expectations.
The year-on-year growth rate shows that the quantity of goods bought in September increased by 3.1%, with growth across all sectors except department stores and household products.
ONS head of retail sales Rhian Murphy said: “Retail sales growth remained steady in the latest three months, following strong summer online sales. Food shops bounced back after a weak few months, but there was yet more bad news for department stores with sales continuing to fall in September.”
Ruth Gregory, senior UK economist at Capital Economics, commented: “September’s retail sales figures were perhaps a bit of a relief given the intense Brexit uncertainty, but were hardly a picture of strength.”
PwC consumer markets leader Lisa Hooker said: “Whatever the political and economic outcome, retailers and leisure operators need to keep their heads held high and hold their nerve, and focus not just on discounting but on continuing to get the basics right.”
Meanwhile, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “Looking ahead, slowdowns in both employment and wage growth look set to hinder growth in spending. Nonetheless, consumers’ confidence is stable at its long-run average, CPI inflation is low, and growth in unsecured credit now has stabilised at a sustainable rate.
“Falling mortgage rates also are supporting house prices and releasing more income for households to spend on discretionary purchases. In addition, fiscal policy looks set to boost disposable incomes in 2020, whichever party is in power. Accordingly, we still think that households can be relied upon to keep the economy growing at close to its trend rate over the coming quarters, even if the Brexit saga carries on.”
