Retail sales accelerated unexpectedly in April, rising at their fastest pace in four years, and easing concern that consumer spending, the economy’s main engine, is slowing.

Retail sales jumped 9,8% compared with April last year, official data showed on Wednesday. That was up from 5,3% in March and well above consensus forecasts for an increase of just 5%.

The rise was attributed in part to the many public holidays during the month, which encouraged consumers to spend more. But it was seen as unlikely to be sustained over the rest of the year.

Nedbank economist Johannes Khosa said he saw the pace of growth in retail sales moderating in the months ahead, curbed by a mix of slow job creation, rising inflation, and the likelihood of interest rate hikes.

The figures were a big surprise after a business confidence survey earlier last week showed that the mood in the retail sector dived during the second quarter.

The increase was driven mainly by a growth in sales of clothing and footwear, which leaped by an annual rate of 16,9%, up from 3,4% in March.

Sales of pharmaceutical and medical goods also rose by a robust 13,7% versus the same month last year.

The news supported the view that SA’s economic recovery is still on track and could back the case for interest rates to rise sooner rather than later, as inflation picks up. Markets are pricing in a half percentage point hike in lending rates at the Reserve Bank’s policy meeting in November, although some analysts believe it will happen sooner.

Others expect a rate hike only early next year.

Absa Capital economist Jeffrey Schultz said that looming interest rate hikes would keep consumers wary in the coming months.

This will make it harder for retailers to raise their prices, which would fan inflation.

Wholesale and retail sales, together with accommodation, account for about 12% of the economy’s overall output, making the sector one of the biggest.