Retail sales in Great Britain rose unexpectedly in August, rebounding from a decline the previous month and surpassing analysts' forecasts, according to data from the Office for National Statistics (ONS). The volume of goods sold increased by 0.5% month on month, defying expectations of a 0.2% decrease and reversing the 0.5% fall recorded in July.

The rise came amid a series of heatwaves that boosted sales of seasonal items such as fans, air-conditioning units, sports merchandise, and clothing during the three months leading up to August. Over the same period, retail sales grew by 2.4% compared with the previous year, outpacing forecasts of a 1.9% increase.

Department stores recorded significant gains, with sales up 1.8% in August after a decline in July attributed to inventory challenges. Non-store retailing, predominantly online shopping, also saw strong growth, increasing 1.7% month on month and contributing to a robust summer performance of 5.4% growth over the three-month period.

Retailers specializing in alcohol and other beverages performed well throughout the summer months. The ONS linked this trend to promotional activity, favorable weather conditions, and the men’s football World Cup, which helped sustain consumer demand.

Despite these gains, fuel sales declined by 1.3% in August and decreased by 2.5% over the summer. This reduction reflects motorists curbing consumption amid rising petrol and diesel prices that have escalated since the Iran war began in February.

Economists view the sales data as a positive sign for the broader economy, which had also posted a surprising 0.4% increase in gross domestic product in July. Analysts note that factors such as the late bank holiday weekend and back-to-school shopping likely supported consumer spending in August. Sandra Prince, Lloyds’ head of corporate consumer, observed that warm weather postponed the usual transition to autumn purchases but retailers effectively maintained consumer engagement, with online sales among the strongest contributors.

These developments come as Chancellor John Healey prepares to unveil the government’s budget next month, with retail performance providing an important indicator of household spending habits and overall economic health.