UK Retail Sales Drop In January After Positive Christmas Spending

Retail sales in the UK fell in January after the pre-Christmas surge in spending, figures have shown, but sales remained stronger than a year earlier.

Sales volumes fell by 1.5% last month, but this followed a strong increase in December when sales jumped by 2.5%.

However, sales in January remained 4.3% higher than a year earlier, the Office for National Statistics figures showed.

Analysts said this showed the underlying picture remained positive for the sector.

“UK retail sales fell sharply in January, though the very strong figure in December always meant a drop was likely,” said David Tinsley at BNP Paribas.

“Despite the drop, there remains some solid momentum in retail sales,” he added.

“While some of the pace of growth has eased back in the sector, it looks likely to still make a significant contribution to GDP growth in Q1.”

The ONS said that sales over the past three months compared with the previous three months – seen as a better measure of the underlying trend – were up 1.1%.

via BBC

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