British retailers got an unexpected lift last month as shoppers snapped up tech gadgets and gold jewellery, pushing retail sales 0.5% higher in September, according to official data
released on Friday.
The rise marked the fourth straight month of growth, defying economists’ forecasts of a 0.2% decline. Compared to the same month last year, sales volumes were up 1.5%, far above expectations for a modest 0.4% increase.
The Office for National Statistics (ONS) said the boost came from strong demand for computers, telecom products, and gold jewellery sold online. “Tech stores saw a notable rise in sales, while online jewellers reported strong demand for gold,” said ONS statistician Hannah Finselbach.
Gold prices have surged to record highs in recent weeks, encouraging both investors and jewellery buyers to stock up.
Retailers have also enjoyed a solid summer season, helped by unusually warm, sunny weather that lifted clothing sales. Following the report, the British pound briefly strengthened against the U.S. dollar.
Across the third quarter, retail sales volumes rose 0.9% compared with the previous quarter — the highest level since late 2022.
Meanwhile, consumer confidence has edged up. The GfK survey, Britain’s longest-running gauge of consumer sentiment, ticked higher in October, matching its strongest reading since August 2024.
Still, spending overall remains cautious. Many households are saving more, reflecting the lingering effects of past inflation, a softer job market, and uncertainty over possible tax increases in November’s budget.
Recent trading updates from major retailers paint a mixed picture. Tesco raised its full-year profit forecast and is counting on a strong Christmas season, while Greggs reported a slowdown in sales growth. Discount chain B&M has issued two profit warnings in under a month.
Even so, September’s results suggest British consumers haven’t completely closed their wallets — especially when gold is glittering. Photo by istara (original picture), modification: Mielon, Wikimedia commons.