UK retail sales volumes rose 0.5% mom in August, reversing July’s unrevised 0.5% decline and beating expectations for a 0.3% contraction. Annual growth accelerated from a downwardly revised 1.2% to 2.4%, above the 1.9% consensus. The less volatile three-month measure was also positive, with volumes rising 0.9% from the three months to May and 2.4% from a year earlier. Overall sales volumes reached their second-highest level since April 2022, just below June’s level.

The monthly recovery was led by non-food store volumes, which rose 0.6%. Department stores rebounded from stock-availability problems in July, while clothing retailers recovered part of the decline caused by promotional activity being brought forward into June. Non-store retailers also partially recovered, while supermarkets, alcohol retailers and beverage sellers supported the broader three-month increase. Online spending values rebounded from a 4.2% decline to a 2.5% increase, lifting the online share of total sales from 28.4% to 28.8%.

The main area of weakness was automotive fuel, where volumes fell as prices rose sharply. Retailers reported consumers making fewer journeys, delaying purchases and filling tanks only partially. August’s stronger-than-expected result therefore points to resilient consumer demand, but not an unqualified acceleration. Part of the increase reversed earlier timing and supply distortions, while falling fuel consumption showed that higher energy costs were already changing household behavior.

Data summary

Key takeaways

  • Retail sales volumes rebounded from a 0.5% decline to a 0.5% increase, substantially outperforming expectations for another contraction.
  • Annual volume growth accelerated from a revised 1.2% to 2.4%, also exceeding the 1.9% consensus.
  • The 0.9% three-month increase indicates that the improvement was broader than one volatile monthly reading, although strong June sales contributed materially.
  • Non-food stores led the August recovery. Department stores rebounded from stock shortages, while clothing and non-store retailers reversed some promotion-related weakness from July.
  • Online spending values recovered strongly, rising 2.5% m/m after falling 4.2%. Their share of total sales increased from 28.4% to 28.8%.
  • Automotive fuel was the principal weakness. Rising prices encouraged consumers to make fewer journeys, postpone purchases and only partially fill their tanks.
  • The release points to resilient consumer demand, but August should not be interpreted as broad acceleration. Part of the rebound corrected earlier promotional and supply distortions.
  • The divergence between stronger overall retail volumes and weaker fuel demand shows that the energy shock is already changing household behavior in the most directly exposed category.