European Investor
18 Sep 2026, 09:31
UK Retail Sales Rebound Strongly in August, Beating Forecasts
UK retail sales rose more strongly than expected in August, pointing to an improvement in consumer spending after weakness in the previous month.
Headline retail sales increased 0.5% month over month, beating expectations for a 0.2% decline and rebounding from a 0.5% fall previously. On an annual basis, retail sales rose 2.4%, above the 1.9% forecast and up from 1.2% in the prior period.
Core retail sales, which exclude fuel, were also stronger than expected. Core sales increased 0.6% month over month versus expectations for a 0.2% decline, while annual core sales growth accelerated to 2.7% from 1.8%, exceeding the 1.9% consensus estimate.
Overall, the figures suggest UK household demand was more resilient in August than markets had expected, providing a positive signal for near-term economic activity despite continued pressure from borrowing costs and inflation.
UK retail sales rose more strongly than expected in August, pointing to an improvement in consumer spending after weakness in the previous month.
Headline retail sales increased 0.5% month over month, beating expectations for a 0.2% decline and rebounding from a 0.5% fall previously. On an annual basis, retail sales rose 2.4%, above the 1.9% forecast and up from 1.2% in the prior period.
Core retail sales, which exclude fuel, were also stronger than expected. Core sales increased 0.6% month over month versus expectations for a 0.2% decline, while annual core sales growth accelerated to 2.7% from 1.8%, exceeding the 1.9% consensus estimate.
Overall, the figures suggest UK household demand was more resilient in August than markets had expected, providing a positive signal for near-term economic activity despite continued pressure from borrowing costs and inflation.
