Retail sales in Great Britain fell more steeply than expected last month, the latest negative economic update before the chancellor, John Healey , announces his budget next week.

The Office for National Statistics (ONS) said the volume of goods sold fell 0.4% month on month in September, much steeper than economists’ consensus expectations of a 0.1% fall.

The decrease, which was fuelled in part by poor online sales of autumn and winter wear because of an unseasonably warm September, comes as figures show consumer confidence in the UK has fallen at the fastest rate since the Covid pandemic .

While retail sales dropped across almost all sectors of the industry, the volume of motor fuel sold soared 2.2% month on month despite prices at the pump hitting record highs, returning to levels last seen before the start of the conflict in the Middle East.

In value terms, the 6.1% increase in fuel sales was the biggest month-on-month increase since 10.9% was recorded in March, the month immediately after the start…