RWC boosts September UK retail sales

UK retail sales were up 6.5% year-on-year in September, well above analysts’ expectations and boosted by promotions around the Rugby World Cup.

The figures were released by the Office of National Statistics on Wednesday.

Analysts expected just a 4.7% year-on-year increase for September.

Compared with August 2015, retail sales increased by 1.9%, again higher than analysts’ expectations of a 0.4% increase.

Average store prices fell again by 3.6% in the month compared to 2014. It’s 15th consecutive month of year-on-year price falls.

The amount spent in the retail industry increased by 2.7% year-on-year and by 1.4% from the previous month. compared with August 2015.

That was boosted by the value of online sales, increasing by 15.2% on the year and by 4.5% from last month.

ONS head of retail sales statistics Kate Davies said the Rugby World Cup had part to play in the latest figures.

“Falling in-store prices and promotions around the Rugby World Cup are likely to be the main factors why the quantity bought in the retail sector increased in September at the fastest monthly rate seen since December 2013.

“The retail sector is continuing to grow with September seeing the 29th consecutive month of year-on-year increases.”

UFX.com’s Dennis de Jong said Chancellor George Osborne will be delighted to see robust consumer spending in September.

“Despite the positive news, it won’t be all plain sailing for Osborne and Co. as recent data revealed that more Brits believe the economy will get worse rather than improve in the next 12 months.

“A stubborn deficit, coupled with a commitment to limit borrowing, means that a bumper period of Christmas shopping is the main item on the chancellor’s Christmas wish list.”