Retail sales hit highest level since 2022

Retail sales volumes have risen for the fourth month in a row, driven by consumers buying gold online and new tech gadgets.

Monthly sales rose by 0.5% in September 2025, new figures from the Office for National Statistics (ONS) show, defying an expected decrease of -0.2%.

“Although food stores saw very little growth, good weather in July and August boosted sales of clothing, while online retailing also did well,” said ONS senior statistician Hannah Finselbach.

Tech sales grew strongly in September, the same month the iPhone 17 launched.

Within non-store retailing, online jewellers reported strong demand for gold.

Between July and September, retail sales were 0.9% higher than the previous three months.

Retail sales volume are a measure of the quantity of goods sold during a certain period.

Non-store retailers – primarily online shops – saw a 3.8% rise in sales in the same period.

The amount spent online between July and September was 3.5% higher than the previous quarter and 5% higher than the same period last year.

ONS statistics are used in deciding government policy, which affects millions, and are also used by the Bank of England to make key financial decisions, such as setting interest rates.

But a recent review of the ONS was highly critical of the agency, calling into question the quality of the economic data it produces.

The ONS has struggled, as have many statistical bodies, with tight budgets and with the problem of getting people to fill in the questionnaires needed for their data.

The figures are a positive sign amid ongoing concerns that the British economy is slowing down.

Kien Tan, senior retail adviser at PwC UK, said “shoppers still seem to be cautiously spending more” despite signs of pressure on consumer sentiment.

Alex Kerr, UK economist at Capital Economics, said the month on month rise in retail sales volumes was better than expected.

“But against a backdrop of weak employment, high inflation and with tax rises on the horizon, we doubt the retail sector will be able to sustain this strength,” he said.

Mr Kerr said that a strong demand for gold jewellery from online retailers could be a result of surging gold prices.

The ONS gathers its figures from all of Great Britain’s large retailers and a representative sample of smaller ones.

Monthly figures for retail sales are generally more volatile than quarterly.