According to the ONS, UK retail sales rose 1.5% for the three-month period between April and June, following a 1.4% decline in the first three months of the year.
Compared with May, sales increased by 0.6%, while year-on-year, retail sales have risen 2.9%, ahead of expectations of a 2.6% gain.
Ben Brettell, senior economist at Hargreaves Lansdown, said given that falling wages are continuing to squeeze household budgets, retail sales data is taking on extra significance as economists look for signs that consumer spending is coming under pressure.
“This news adds to a renewed sense of optimism on the UK’s economic prospects,” he said.
“Spending seems to be holding up despite falling wages, and if the sterling-driven spike in inflation is finally receding, we could see a stronger contribution from the UK consumer in the second half of the year.”
Having fallen earlier in the day, sterling reacted well to the figures, gaining about a third of a cent on the dollar.
