British retail sales rose by a stronger-than-expected 1% in August and growth in July was revised up, official figures showed on Friday.
Economists polled by Reuters had forecast a monthly rise of 0.4% in sales volumes last month.
The Office for National Statistics said sales volumes in July rose by a revised 0.7% – up from a previous estimate of a 0.5% month-on-month increase.
Some supermarkets and clothing retailers reported a boost due to warmer weather and end-of-season sales, according to the ONS.
Sterling rose immediately after publication of the figures.
Following a surge in inflation in 2022 which hit consumer spending power for much of the following two years, a slowdown in price growth, faster increases in wages and an interest rate cut by the Bank of England (BoE) have helped to ease cost-of-living pressures.
However, recent reports from UK retailers have shown discretionary spending remains under pressure.
Fashion retailer Primark reported a fall in UK underlying sales in its latest quarter.
On Tuesday, B&Q and Screwfix owner Kingfisher said demand for kitchens and bathrooms was weak.
However, retailer Next said on Thursday that it had seen better-than-expected sales in the first six weeks of its second half, which reflected an improvement in the weather.
It added that ‘big ticket’ home furnishing items remained a difficult market.
Consumers also appear alarmed by comments by the new Labour Government of Keir Starmer about the tough economic outlook and the possible need for higher taxes.
A survey published earlier on Friday showed consumer confidence dropping sharply to a six-month low in September.
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