Source: Sharecast
According to the Office for National Statistics, retail sales volumes rose 0.5% last month, following a downwardly-revised 0.5% increase in July.
Analysts had been expecting a more modest 0.3% rise in August.
Leading the gains were clothing stores, butchers and bakers and non-store retailing, with respondents attributing the stronger demand to the good weather.
In the three months to August, sales eased 0.1% compared to the previous three months. The rate of decline slowed, however, compared to the 0.6% fall seen in the three months to July.
The ONS said that falls in automotive fuel and in computer and telecoms equipment stores had been partly offset by increases in non-store retailing and clothing stores during the three-month period.
Kris Hamer, director of insight at the British Retail Consortium, said: “August closed out a bright summer of retail sales on a high note, with volumes up for the third month in a row.
“The prolonged sunshine, bank holiday and interest rate cut all helped to boost sales, especially for clothing and books.”
However, he added: “Business confidence remains weak. And there is little sign of improvement in the run up to Christmas, especially with the Budget falling so close to Black Friday and fears of potential further tax rises.”
Households are currently feeling the squeeze from a number of directions. As well as uncertainty around November’s Budget and wider economic conditions, sticky inflation currently stands at 3.8%, while food price inflation is 5.1%.
Interest rates also remain high by historic standards. The Bank of England cut the cost of borrowing to 4% in August, but opted to leave it unchanged this month.
A survey released earlier on Friday from GfK showed consumer confidence dipped in September.