UK Retail Sales Drop 0.4% in September, Missing Forecasts as Warm Weather Weighs on Spending

British retail sales volumes fell 0.4% in September from August, a steeper decline than the 0.1% drop forecast by economists polled by Reuters, the Office for National Statistics said Friday. A warm start to autumn curbed online clothing sales, while supermarket volumes also declined. Over the three months to September, total sales volumes rose 0.7%, with the ONS revising up monthly figures for July and August. Fuel sales volumes climbed 2.2% in September from August. The data contrast with recent spending resilience that led Tesco, Sainsbury's, Greggs and Kingfisher to upgrade annual profit guidance. Retailers have flagged challenging consumer conditions ahead of next week's budget announcement by finance minister John Healey and signs of greater inflation pressure in 2027. A survey published earlier Friday showed UK consumer confidence in October suffered its sharpest month-on-month fall since early in the COVID-19 pandemic.