UK retail sales picked up in January, offering some respite to ailing high street shops, according to the latest official figures.
UK retail sales rose 1% in January, the Office for National Statistics (ONS) said. This proved ahead of market expectations of 0.2%.
Rhian Murphy, head of retail sales at the ONS said this was the result of clothing discounts:
“Retail sales returned to growth, with increases across most sectors.
Clothing stores saw strong sales, luring consumers with price reductions with food sales also growing after a slight dip over Christmas.”
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, commented: “January’s jump in retail sales shows that most households have maintained a happy-go-lucky mentality, despite the fraught political situation. While consumers’ confidence is down, this reflects rather fuzzy expectations that Brexit might be costly eventually.”
The better-than-expected retail figures follow the most recent inflation figures. According to January’s Consumer Price Index, UK inflation fell to 1.8%, below the Bank of England’s target of 2%.
This was attributed to falls in electric and gas prices, with an Ofgem imposed price cap taking effect over the period.
Despite easing inflation and retail somewhat rebounding, the UK high street continues to suffer, with various well-known brands closing stores.
Retailers such as New Look, HMV and restaurant chains such as Prezzo and Jamie’s Italian all announcing site closures in 2018.
