Retail sales in Great Britain rose unexpectedly by 0.5% in August, reversing July’s 0.5% fall and exceeding forecasts of a 0.2% decline. The increase provides a more positive signal about consumer spending and the wider economy ahead of the government’s budget, following a surprise rise in GDP in July.

Hot weather boosted demand for fans, air-conditioning units, sports goods, clothing, alcohol and beverages, while department-store sales rose 1.8% and online retail sales increased 1.7%. Sales were up 2.4% year on year over the three months to August, although fuel sales fell as higher petrol and diesel prices discouraged non-essential journeys; rising energy and living costs continue to threaten household spending.