UK retail sales grew more than expected at the beginning of the year, as consumers spent more careful on food to eat at home.
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(Bloomberg) – UK retailers have grown more powerfully than expected at the beginning of the year, as consumers spent more cautious on food to eat at home.
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The National Statistics Office said on Friday that the volume of goods sold online and in stores increased by 1.7 % in January, which led to a loss of 0.6 % recorded during the holiday season in December. The increase last month was the largest since May. Economists expected a 0.5 % increase.
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The data showed that food sales were the strongest since the beginning of the epidemic in March 2020, which prompted the total number despite the decline in other groups. All specialized stores such as butchers and bakers, as well as supermarkets and alcohol and tobacco stores, have reported a strong activity thanks to more people who eat at home in January.
While the main number may help the working government to face a comprehensive narration of economic stagnation, the sector's data separately indicates that consumers remain careful while preparing for more shocks. Treasury Advisor Rachel Reeves promised to start growth after her first budget in October imposed taxes in salary statements that prompted warnings from senior employers that they might have to reduce jobs.
“The largest monthly rise in retail sales in the United Kingdom since May 2024 has come after a weak offer during the critical holiday period,” Bloomberg said in a note. “While this adds to the evidence that the economy has settled, consumers are scheduled to remain cautious about their spending in the future.”
Traders have reduced discounts at interest rates modestly from England to this year, where prices are less than 50 basis points in the total, and two points less than Thursday. The pound was a little change at 1.2676 against the dollar.
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The UK toured a slight difference in the threat of technical recession thanks to a sudden increase in production at the end of 2024. But retail sales data shows that the government of Prime Minister Kiir Starmer has not yet left the forest.
Families face costly renewed pressure from increasing food and energy bills, as well as the possibility of a trade war amid the increasing tariff threats by US President Donald Trump.
“The clothes stores and home commodity stores had a month less than a successful month, as he informed the retailers of faded sales because of the poor consumer confidence,” said Hana Vinselpach, the chief statistical on ONS.
Retail sales decreased by 0.6 % during a three -month period and remained less than pre -ponds, and on the numbers of ONS showed.
While Reeves announced a wide range of long -term growth measures, economists warn that it will take years before they have an impact on production. This means that any hopes of increasing demand for demand are installed on consumers.
Despite improving personal financial affairs, families are more depressed around the economy than they were in February last year when the United Kingdom came out of the recession, according to the separate consumer confidence numbers issued by GFK earlier on Friday. Another survey by the British Federation showed that the growth of retail sales in January doubled the levels of last year, thanks to the discounts on furniture and home accessories.
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The weak consumer confidence has also become a growing risk of the largest retail dealers in the UK. The stores warn that it will have to increase prices to deal with the height of the Labor Party in employment taxes, as well as the third large increase in the minimum wage.
The owner of Primark Associated British Foods Plc said he expected weakening sales this year due to the dark morale, while the retailer of fashion and home appliances has also said that she expects a slowdown in sales. In general, retail shares have been lower than FTSE 350, as more than 11 % fell compared to 4.8 % since the work budget.
– With the help of Alice Glidehil, Haromi Echikura, Mark Evans and Joel Renby.
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