According to the British Retail Consortium (BRC), UK retail sales experienced 3% growth this September, a significant increase from the 1.8% growth recorded this August.
The growth is the highest increase experienced so far since June of this year, which also saw a 3% rise.
The cause of the sudden increase in retail sales is thought to be the cooler weather which led to higher demand for warm clothing and footwear. This combined with significant discounts offered in stores led to an increase in sales.
This latest information should help calm worries that retail sales would drop amid the U.S mortgage fallout, the recent credit crunch and high interest rates.
This latest information means that the Bank of England is less likely to reduce interest rates in the imminent future, although economists have been speculating that a rate cut could come early next year because of the turmoil in financial markets.
In related news, today the Chancellor of the Exchequer Alistair Darling will be announcing tax and spending plans in his first pre budget report. This sudden boost in sales will be good news for him, although it is still expected that he will reduce the official economic growth forecasts for 2008.