Source: Sharecast
According to estimates from the Office for National Statistics, retail sales volumes rose 1% in August, following an upwardly-revised 0.7% increase in July. Volumes were at their highest levels since July 2022.
Analysts, who expected sales growth to have slowed, had forecast a 0.4% increase.
In the year to August, sales jumped 2.5%, the largest annual rise since February 2022 and also ahead of expectations.
The ONS said supermarkets and clothing retailers in particular had benefited from warmer weather and end-of-season sales.
Food stores sales volumes surged 1.8% following a rise of 0.3% in July, and by 0.6% year-on-year - the largest annual increase since July 2021.
However, non-food stores sales volumes - which includes department stores and clothing retailers, among others - rose by 0.6%, down on July’s 1.6% rise.
In the three months to August, sales volumes rose by 1.2% on the three months to May.
Erin Brookes, European retail and consumer lead at consultants Alvarez & Marsal, said: "The warm weather, bank holiday weekend and high levels of tourism all contribute to a more robust month sales. Margins, however, likely remained under pressure, as retailers needed to clear through summer stock."
Russ Mould, investment director at AJ Bell, said: “Any optimism about blockbuster retail sales will have been tempered by the very weak consumer confidence data which accompanied it.
“This suggest the government’s downbeat message about the economy might become a self-fulfilling prophecy and that last month might be as good as it gets for retail.
“It will certainly be prompting nervousness among British shopkeepers in the run-up to Christmas.”
Data released on Friday showed a sharp downturn in consumer confidence, as people nervously await next month’s Budget.