Retail sales are at their highest level in more than three years, according to the latest measure of the British economy that confounds economists.
Quantities purchased in stores rose 0.5% in September, well above the 0.2% contraction expected by economists polled by Reuters.
This is the fourth consecutive monthly increase and brings volumes to their highest level since July 2022.
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Computer and telecommunications retailers fared well with the launch of the iPhone 17 this month, while online jewelers reported strong demand for gold despite the price hovering around record highs.
Gold has been in high demand and in recent days reached a recordas some investors pulled their money out of the US dollar and government bonds amid the current government shutdown.
This happened despite a rainy month – which usually keeps buyers at home – and a five-day metro strike in London.
The impact of the rain, however, was reflected in the increase in online spending, which reached one of the highest levels since the end of the pandemic.
A decline in food store sales was recorded between August and September, a sign of a reaction to high food price inflation.
A good week for the economy?
Retail sales figures are significant because they measure household consumption, the biggest spender in the UK economy.
Increasing retail sales can mean economic growth, which the government has repeatedly said is its top priority.
Earlier this week, another key economic measure performed better than expected.
Inflation remained at 3.8% rather than reaching the widely expected rate of 4%, double the target rate set by policymakers at the Bank of England.
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Consumers were feeling better about their financial situation, a closely watched measure of consumer confidence showed Friday.
Buying sentiment is up from last month, according to market research firm GFK, as intentions to buy big-ticket items like electrical appliances and furniture increased.
Together, this suggests people aren’t feeling too gloomy heading into the November budget.