UK Retail Sales Surge In January, Beating Expectations

UK retail sales rebounded sharply in January, exceeding forecasts and signaling improved consumer confidence, even as concerns linger over slow economic growth and potential U.S. tariffs, Euronews reported.

 UK retail sales increased 1% in January, exceeding the market forecast of 0.6% on an annual basis.

Retail sales rose 1.7% in January on a monthly basis, far surpassing analyst expectations of 0.3%, according to official data from the Office for National Statistics (ONS). This marked a strong recovery from December’s 0.6% decline.

The increase was primarily driven by a 5.6% rise in food sales—the largest jump since March 2020—boosted by higher supermarket purchases and increased spending at specialty food stores such as bakeries and butchers.

Tobacco and alcohol sales also saw notable gains. However, non-food sales, including household goods, footwear, textiles, and automotive fuel, fell by 0.6% compared to December. Excluding fuel, retail sales rose 2.1% month-over-month.

On an annual basis, UK retail sales increased 1% in January, exceeding the market forecast of 0.6%. However, this represented a slowdown from December’s 2.8% annual growth.