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This follows 1.3 per cent growth in the three months to August and compares with 0.5 per cent growth at the same time in 2006.

Three-monthly growth in sales volume was 2.3 per cent for predominantly non-food stores while sales volume for food stores increased by 0.8 per cent, the highest growth for this sector since August 2006. The highest three-monthly growth was for household goods stores at 4.8 per cent.

Growth was reported in each sector except for textile, clothing and footwear retailers, where no growth was reported.

Total sales volume in the three months to September 2007 was 5.2 per cent higher than the same period a year ago. Sales volume for predominantly non-food stores was 7.4 per cent higher than a year ago, the largest increase for this sector since October 2004 (7.6 per cent). Sales volume for household goods stores was 10.2 per cent higher than a year ago, the largest increase for this sector since December 2001 (12.1 per cent).

Largest increase since 2004 

Total sales volume increased by 0.6 per cent between August and September. The largest increases occurred in other non-food stores and non-specialised stores (which includes department stores). The largest decrease occurred in non-store retailing and repair (1.3 per cent).

The not seasonally adjusted value of retail sales for the three months to September was 3.8 per cent higher than in the same period a year earlier.

The average weekly value of sales in September was £4.9 billion, 4.6 per cent higher than in September 2006. Sales by predominantly non-food stores increased by 5.5 per cent over the year, compared with 3.7 per cent for food stores and 3.1 per cent for non-store retailing and repair. Sales by other non-food stores increased by 7.5 per cent, the largest increase for this sector since August 2004 (7.9 per cent).

The volume of retail sales year-on-year have increased by 5.2 per cent, the largest increase since November 2004, highlighting the buoyant conditions retailers in the UK are experiencing. In addition, the underlying three month growth figure increased by 1.7 per cent, the highest growth since July 2006, again indicating that retail sales are showing no sign of slowing down. The majority of this growth has been driven by non-food sales.

Extraordinary

"These strong results have shown just how resilient the UK retail sector has been over the past few months, particularly at a time when consumer concern over interest rates and lending is increasing," says David Bush, Head of Grant Thornton's Retail Services Team.

"Given these figures are up against strong comparative sales in the same period, it demonstrates how extraordinary these results really are," he continues.

Today's figures match Grant Thornton's most recent Quoted Retail Companies Index which has seen the number of positive trading statements issued by retailers listed on the London Stock Exchange at its highest ever level. These figures are also consistent with the British Retail Consortium's and CBI's most recent retail sales results.

"As consumer spending appears to be continuing unabated, it seems likely that one further interest rate rise is needed to finally have the required impact. However, with a housing downturn on the cards because of the 'credit crunch' in the US, other factors will clearly weigh equally as heavily on the Bank of England's minds when they next meet to consider interest rates," he concludes.

Related links

• Office for National Statistics
• Grant Thornton