Retail sales in Britain grow and surpass expectations during September.

Data released by the UK Office for National Statistics on Friday morning showed positive retail sales figures for the country during September. Retail sales recorded a growth of 0.3% month-on-month in September, while markets had expected a contraction of around 0.4%. Retail sales had previously recorded a growth of 1.0% in August.

The index measures the change in the total value of inflation-adjusted sales at the retail level and serves as an indicator of the value of goods sold by retailers based on a sample of retail stores of various types and sizes. The data includes all sales conducted through the internet.

An increase in the reading that is higher than expected is seen as positive for the movements of the pound sterling; however, if the reading is lower than expectations, it will negatively affect the movements of the pound sterling. It is also a key measure of consumer spending, which constitutes the majority of overall economic activity; an increase in retail sales indicates more spending. The index reading also clarifies the trends in retail sales and the demand for specific types of goods over others.