12.10.202623:18:29UTC+00UK Retail Sales Growth Picks Up in September

UK retail sales rose by 1.0% year-on-year on a like-for-like basis in September 2026, beating expectations for a 0.7% increase and quickening from 0.5% in August. Total retail sales growth also strengthened, rising to 1.3% from 0.7%, though it remained slightly below the 12-month average of 1.5%.

By category, food sales grew by 2.5%, while non-food sales inched up by 0.3%. Health and beauty products saw their strongest growth of the year, in contrast to clothing and footwear, where sales weakened amid unseasonably warm weather.

Separately, Barclays’ gauge of consumer spending increased 2.0% year-on-year, easing from 2.1% in August. Essential spending rose 2.5%, driven largely by a 17.3% surge in fuel expenditure as diesel prices hit record highs, while non-essential spending was up 1.8%.

Household financial confidence climbed to a seven-month high of 67%. Even so, 68% of consumers remained worried about the potential impact of the forthcoming budget on their finances, and 30% reported cutting back on non-essential purchases.