In January, retailers in Great Britain experienced a significant increase in monthly sales, marking the most robust recovery in nearly three years. This boost can be attributed to a resurgence in consumer foot traffic following a decline in holiday shopping.
According to the Office for National Statistics (ONS), there was a 3.4% increase in sales last month. This was the largest monthly growth since April 2021, with all retail industries except clothing stores seeing a rise. This provided much-needed relief after disappointing Christmas sales. Supermarkets, sports shops, and department stores all had a successful month.
The Office for National Statistics (ONS) has updated its data, showing that retail sales during the important holiday season decreased by a larger amount than originally reported. The revised numbers now indicate a 3.3% decline in December, which is the largest drop since businesses were required to shut down due to the Covid pandemic in 2021.
The retail sales data exceeded expectations and was released the day after the UK officially entered a recession at the end of last year, which was a setback for Rishi Sunak’s goal of economic growth. The economy decreased by 0.3% in the last quarter of 2023, following a 0.1% decrease in the previous quarter, satisfying the criteria for a technical recession – two consecutive quarters of declining gross domestic product.
However, Andrew Bailey, the governor of the Bank of England, downplayed the significance of the quarterly GDP figures, suggesting there were signs of an upturn in the economy that would become clearer in the months ahead.
In response to the data indicating that the UK was experiencing a recession, Chancellor Jeremy Hunt stated on Thursday that the efforts to control inflation were expected to result in a period of slow economic growth. He also mentioned that the economy was now showing signs of improvement.
Although there was a growth in sales during January, the Office for National Statistics (ONS) reported that inflation-driven price increases resulted in consumers paying more for fewer goods. The amount spent increased by 3.9% compared to the previous month, but the volume of goods sold only increased by 3.4%.
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According to Heather Bovill, a deputy director at the Office for National Statistics (ONS), there was a widespread growth in sales in various retail industries, with supermarkets experiencing particularly strong performance. The ONS reported that household goods stores, sports shops, and department stores saw strong sales due to January sales promotions. Additionally, a decrease in fuel prices contributed to solid sales in the fuel sector.
Source: theguardian.com
