RETAIL SALES SURGE WHICH SUGGESTS THE UK ECONOMY IS GROWING Despite entering a technical recession
Retail sales have grown significantly, even being described as a surge – far exceeding expectations – as consumer spending bounced back in January.
The 3.4% increase in retail sales is more than double the 1.5% rise forecast by analysts – and suggests the economy is recovering strongly.
Since April 2021 there has not been an increase as large as the recovery from December 2023 to January 2024.
On Thursday, the UK officially entered recession after two small consecutive three-month periods of contraction – and poor retail performance was partly to blame at that time.
The January bump in retail sales more than compensates for a surprise fall in the key Christmas shopping month of December, where a 3.3% fall was recorded after the number was revised downwards by the Office for National Statistics on Friday.
January discounts helped household shops, department stores and sports shops achieve “robust” trade, the ONS added.
