UK retail sales unexpectedly rise, boosted by new iPhone

British retail sales unexpectedly rose by 0.3% in September, figures from the Office for National Statistics showed on Friday, boosted by the launch of the latest iPhone and other technology products.

A Reuters poll of economists had forecast a monthly fall of 0.3% in sales volumes from August.

Sterling rose by more than a third of a cent against the U.S. dollar after the data was published.

The ONS said telecoms and computers were the main drivers of non-food sales, with the sectors jumping by almost 35% in monthly terms in September.

Last month, Apple unveiled an artificial intelligence focused-iPhone 16 lineup as well as a sleeker Apple Watch and new AirPods.

British households are still struggling with higher living costs accelerated by a surge in energy prices following Russia’s invasion of Ukraine in February 2022.

But the cost of living squeeze on households has slightly eased since then, with inflation falling below 2% from a peak of 11.1% in October 2022.

The ONS said during the year to September 2024, sales volumes rose by 3.9%, the largest annual rise since February 2022.

“Retail sales grew in September as tech stores reported a notable rise in sales,” Hannah Finselbach, senior statistician at the ONS, said.
“These were only partially offset by a poor month for supermarkets, where retailers said bad weather and households continuing to cut back on luxury food items hit sales.”

Recent reports from UK retailers had shown robust foods sales.

Tesco, Britain’s biggest grocer, lifted its annual profit forecast and said it was expecting a strong Christmas.

But consumers have remained reluctant to spend on discretionary items.

The boss of another supermarket chain Sainsbury’s, which makes a quarter of its sales in non-food, told Reuters shoppers remained nervous about spending on bigger ticket items before the new government’s first budget on Oct. 30.