Retail sales fall more than expected in January
UK retail sales weren’t as good as expected in January. Month-on-month, they fell 1.5 per cent, after December’s particularly strong 2.5 per cent rise on the back of bumper Christmas shopping.
Analysts had expected a fall of one per cent in January. The decline's the biggest since April 2012.
But the underlying trend in retail is still strong. Samuel Tombs of Capital Economics says sales should continue to be boosted by strong growth in employment, rising confidence and the gradual easing of the squeeze on real pay.
Year-on-year, sales were up an encouraging 4.3 per cent, although forecasts had been for a five per cent increase. December saw a 5.3 per cent increase.
According to the Office for National Statistics, there was significant growth in non-food stores (eight per cent).
Stores selling household goods increased 9.8 per cent – the largest increase year-on-year since July 2007.