UK retail sales unexpectedly rose in January as UK consumers continue to spend, with one analyst saying the economic picture is “looking a lot less grim”.
The ONS said retail sales volumes increased by 0.5% in January 2023, following a fall of 1.2% in December 2022, beating expectations for a reading of 0%.
While retail sales were stronger than expected as consumers kept spending but the numbers show that people cut back on buying due to the surge in costs.
Today’s data follows an unexpected drop in retail sales in December, when cost-conscious consumers cut back on spending in the run-up to Christmas.
Highlights from the latest ONS data for January:
- On an annual basis, retail sales volumes were down by 5.7% in the three months to January 2023, as the cost of living crisis meant people could afford to buy less.
- Sales volumes at non-store retailers such as online shops jumped by 2% in January 2023, with “some feedback that January sales promotions supported the rise”.
- Automotive fuel sales volumes rose by 1.7% in January 2023, following a rise of 0.3% in December 2022 as fuel prices continued to fall.
- As food inflation hit a record high, food store sales volumes fell by 0.5% following a fall of 0.7% in December 2022.
- People also bought less clothes in January; clothing stores sales volumes fell by 2.9% in January 2023, following four months of positive growth.
