The Office for National Statistics said UK retail sales volumes rose 0.5% in August from the previous month, defying economists' expectations of a 0.2% decline, following a 0.5% drop in July. The increase was driven by online sales, department store spending, and higher clothing and food sales. Fuel sales fell 1.3% from July. Compared with the same period a year earlier, retail sales volumes in August grew 2.4%. However, the overall performance of major UK retailers remains sluggish. Primark reported flat underlying UK sales growth in its fourth quarter, John Lewis Partnership reported a wider first-half loss, and Next cut its sales growth forecast for the coming months. Prime Minister Andy Burnham has already introduced measures to ease the cost-of-living burden on some households, but fiscal constraints still limit further tax cuts or additional cash support in the new government's first budget, due to be announced on October 28.
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