{"id":299708,"date":"2026-01-23T16:02:07","date_gmt":"2026-01-23T16:02:07","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/299708\/"},"modified":"2026-01-23T16:02:07","modified_gmt":"2026-01-23T16:02:07","slug":"surprise-uk-retail-sales-rise-adds-to-signs-of-pickup-in-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/299708\/","title":{"rendered":"Surprise UK retail sales rise adds to signs of pickup in economy"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">UK retail sales rise 0.4% in December<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Economists had expected 0.1% fall<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Data adds to early signs of post-budget improvement in economy<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">December retail bounce led by online stores<\/li>\n<\/ul>\n<p>MANCHESTER, England, Jan 23 (Reuters) &#8211; British retail sales rose unexpectedly last month, helped by strong online shopping, according to data published on Friday which added to signs of a pickup in the economy after finance minister Rachel Reeves&#8217; budget.<\/p>\n<p>Sales volumes rose by 0.4% in December from November, the Office for National Statistics said. This was the first increase since September and marked a brighter end to an otherwise drab final quarter for shops.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-retail-sales-show-unexpected-increase-december-2026-01-23\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fuk%2Fuk-retail-sales-show-unexpected-increase-december-2026-01-23%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>Economists polled by Reuters had expected sales to fall by 0.1% in month-on-month terms.<\/p>\n<p>Earlier, market research firm GfK said <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-consumer-morale-inches-up-despite-economic-worries-gfk-says-2026-01-23\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">consumer confidence<\/a> rose to its highest level since August 2024 as households became more positive about their own finances.UK POLITICS COULD IMPACT CONFIDENCEFriday&#8217;s data added to tentatively positive readings for <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-economy-grew-by-better-than-expected-03-november-2026-01-15\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">economic activity<\/a> for Reeves after her tax-raising November budget, despite more signs of cooling in the labour market and still-high inflation.<\/p>\n<p>&#8220;The budget was tough, but people&#8217;s worst fears weren&#8217;t met,&#8221; said Neil Birrell, chief investment officer at Premier Miton, a wealth management company.<\/p>\n<p>&#8220;This does suggest the UK consumer is in better shape than expected, and if that follows through in the wider economy, maybe there is room for a bit more optimism for the UK.&#8221;<\/p>\n<p>For the fourth quarter as a whole, retail sales fell by 0.3%, reflecting declines in November and October, which the ONS said would exert a 0.01 percentage-point drag on overall economic output.<\/p>\n<p>Thomas Pugh, chief economist at RSM UK, said the outlook for spending hinged on whether consumers stuck to their high levels of savings or used them to boost spending, and on the possibility of fresh political turmoil with Prime Minister Keir Starmer under pressure ahead of local elections in May.<\/p>\n<p>&#8220;A disruptive leadership contest, which opens the door to another round of tax increases, is a significant downside risk to confidence continuing to recover,&#8221; Pugh said.<\/p>\n<p>The ONS said online jewellers saw renewed demand for precious metals in December &#8211; against a backdrop of rising gold prices.<\/p>\n<p>Compared with December a year ago, overall retail sales volumes were 2.5% higher, marking the strongest such reading since April.<\/p>\n<p>Still, sales volumes remained 2.2% lower last month than their level six years ago, before the COVID-19 pandemic.<\/p>\n<p>Major British retailers were generally cautious about 2026 prospects in their post-Christmas trading updates.<\/p>\n<p>Food retail leader Tesco <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/TSCO.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(TSCO.L), opens new tab<\/a> <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-tesco-forecasts-profit-upper-end-guidance-after-christmas-sales-rise-2026-01-08\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">outperformed<\/a> the wider market but Marks &amp; Spencer <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/MKS.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(MKS.L), opens new tab<\/a> <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/ms-reports-56-rise-christmas-food-offsetting-slip-clothes-2026-01-08\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">disappointed<\/a> with its clothing sales and Primark owner Associated British Foods <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/ABF.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(ABF.L), opens new tab<\/a> <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/primark-owner-ab-foods-warns-lower-annual-profit-2026-01-08\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">warned<\/a> on profit. Fashion retailer <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-next-edges-up-profit-outlook-after-christmas-sales-beat-expectations-2026-01-06\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">Next<\/a> <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/NXT.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NXT.L), opens new tab<\/a> and electricals group <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-currys-shares-rise-after-strong-christmas-prompts-profit-upgrade-2026-01-21\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">Currys<\/a> <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/CURY.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(CURY.L), opens new tab<\/a> raised profit outlooks.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Andy Bruce, additional reporting by James Davey; 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