Retail sales growth in the UK slowed in September, with a 0.3% increase compared to the 1.0% growth seen in August. The increase was mainly driven by strong sales in tech stores, particularly computers and telecommunications retailers, possibly due to students buying PCs for the new term. This growth was partially offset by decreases in food sales, potentially due to bad weather and households cutting back on luxury food items.
Despite the overall slowdown in retail sales growth, the economy appears to be robust, as indicated by the unexpected rise in sales. Consumer confidence has also reached its highest level in over five years, according to Deloitte. However, concerns about the upcoming budget may be impacting hiring decisions, as job vacancy adverts dropped below 1.6 million for the first time in two years.
The rise in retail sales, particularly in the tech sector, suggests that households are still willing to spend on big ticket purchases despite concerns about tax rises. This positive momentum in the economic recovery, along with the increase in consumer confidence, points towards a resilient economy. Overall, while retail sales growth may have slowed, the broader picture shows growth across all main shop types in the third quarter of the year.
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