LONDON: A surprise leap in retail sales volumes last month has boosted hopes the UK economy will end the year on a high note, as consumers continue to shrug off the shock of the Brexit vote.
A rush to buy winter clothes and buoyant Halloween trade for supermarkets helped UK retail sales grow at the fastest annual pace for 14 years in October, according to official figures.
Defying gloomy predictions before the EU referendum that a vote to leave could spark recession, the figures showed households continued to increase their spending last month and retail sales volumes were up 7.4% on a year earlier. That was the strongest growth since early 2002 and beat forecasts for growth of 5.3% in a Reuters poll of economists.
On the month, sales were up by 1.9%, well ahead of forecasts for a 0.4% rise. But economists were quick to warn the growth would be hard to sustain.
The Office for National Statistics said there were several factors behind the October improvement.
“Cooler temperatures in October boosted clothing sales as shoppers took their cue to purchase winter clothing, while the supermarkets benefited from Halloween. This has also coincided with the strongest growth in internet sales seen for five years,” said Kate Davies, an ONS senior statistician.
The jump in sales on a year ago came as all types of retailers, from grocers to petrol stations, enjoyed some growth. The biggest contribution came from non-store retailing, which includes market stalls and mail order as well as internet-only retailers such as Amazon.
