Financial News: UK Retail Sales Fall More Than Forecast

UK Retail Sales Fall More Than Forecast

10/23/2026 - 04:09:00 (RTTNews)

(RTTNews) - UK retail sales declined more than expected in September as warm weather weighed on clothing and supermarket sales, data released by the Office for National Statistics showed on Friday.

Retail sales decreased 0.4 percent in September, reversing a rise of 0.7 percent in August and exceeded economists' forecast of a 0.1 percent fall.

Online clothing retailers suggested that sales of autumn and winter ranges were affected by the warmer weather. Supermarket sales also fell following growth in July and August.

Excluding auto fuel, retail sales declined 0.7 percent, in contrast to the 0.9 percent increase in August. Economist had forecast a marginal 0.1 percent fall for September.

Food and non-food stores sales decreased 0.4 percent each, while automotive fuel sales increased 2.2 percent.

On a yearly basis, retail sales growth eased to 0.8 percent from 2.7 percent in August. This was also slower than forecast of 1.0 percent.

Retail sales excluding auto fuel also advanced 0.8 percent, weaker than the 2.9 percent increase in the previous month. Economists had forecast sales to grow 1.5 percent.

In the third quarter, retail sales increased 0.7 percent from the prior quarter. Data showed that fuel sales decreased in April as retailers suggested that motorists made fewer journeys and delayed filling their tanks as prices increased. Sales recovered gradually with all three months of third quarter reporting higher sales volumes than all three months of the second quarter.

Food stores sales grew on the quarter as supermarkets had increased sales in July and August. Non-store retailers' sales volumes increased, after the second quarter was affected by lower sales in April.

Elsewhere, survey data from the market research group GfK showed that consumer confidence registered its sharpest fall in October since the onset of the pandemic in early 2020. The consumer sentiment index declined 11 points to -24 in October.

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