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Coronavirus: Biggest quarterly leap for sales on record, official figures

Official figures show the biggest quarterly leap on record for retail sales, as the sector battles back from the coronavirus lockdown amid renewed restrictions.

The Office for National Statistics (ONS) reported a 17.4% jump in volumes in the third quarter of the year covering July to September but a mixed picture for various sectors.

The headline figures were much stronger than analysts had expected given continued consumer caution in the tough COVID-19 economy that has led to a surge in unemployment and forced the chancellor to improve his financial aid to businesses and workers.

Separate data on Friday added weight to fears the wider economic recovery is slowing down as a survey of businesses reported a weakening in activity in September across services and manufacturing.

The retail figures gave some hope that consumer demand was bearing up.

The ONS sales excluding fuel purchases rose by 1.6% in September from August, leaving them 6.4% higher when compared to the same month in 2019.

There has been separate evidence that shoppers may have brought forward Christmas spending because of uncertainty over pandemic restrictions in the months to come.

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But the ONS said grocers were doing well at the expense of restaurants, while fashion continued to struggle.

The ONS said supermarkets led the spending spree because people were eating out less - with non-food sales just 1.7% above their pre-pandemic level in February. Clothing sales were almost 13% down in the same measure.

The proportion of online sales in the total mix stood at almost 28% in September compared to 20% in February.

The news is largely welcome for a sector that has been among those to feel the worst of the pain in the crisis to date, according to a Sky News jobs tracker.

Industry figures, however, suggest that discounting in many sectors - to lure shoppers to spend - will hit bottom lines.

ONS deputy national statistician for economic statistics, Jonathan Athow, said of the current trends: "Retail sales increased again in September, the fifth consecutive month of growth since the record falls seen at the start of the pandemic.

"Food stores and online retailers have fared particularly well in recent months, and most other store types have now recovered to pre-pandemic levels too after being subject to temporary closures during restrictions in the spring.

"Spending on home improvement and gardening items in particular have boosted sales.

"Clothing store sales have been slower to recover and fuel sales remain subdued as people continue to work from home and have reduced the amount they travel."