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British retail sales unexpectedly rose by 1 per cent in February, propelled by an increase at department stores as well as clothing and household goods shops.
Friday’s monthly data from the Office for National Statistics showed the volume of goods bought exceeded the 0.4 per cent contraction expected by economists polled by Reuters.
However the figure fell short of January’s 1.4 per cent increase.
Retail sales rose by 0.3 per cent in the three months to February compared with the previous three months, indicating resilient spending despite the backdrop of weak economic growth and low consumer confidence.
Supermarket sales volumes fell back following a strong rise in January.
Separate data on Friday confirmed that UK economy ended 2024 with growth of just 0.1 per cent in the fourth quarter, highlighting the challenge the Labour government faces delivering on its vows to energise the economy.
The revised official figures showed that over the course of the year, the UK economy grew by 1.1 per cent, slightly more than the initial estimate of 0.9 per cent. That followed growth of 0.4 per cent in 2023.
Chancellor Rachel Reeves has vowed to kick-start stronger growth by easing regulation, overhauling planning rules and backing big projects including a new runway at London’s Heathrow airport.
But the economy is struggling to gain momentum, with the Office for Budget Responsibility this week slashing its 2025 growth projections to just 1 per cent.
Friday’s data showed that real GDP per head fell by 0.1 per cent in the fourth quarter — in line with the previous estimate — and was flat over the year.
This is a developing story
