British retail sales rebound from record slump

Retail sales in Britain rallied sharply in January, official data showed last Friday, as weather conditions returned to normal after December’s record snow-induced slump.

Sales jumped 1.9 per cent in January from the previous month, the Office for National Statistics (ONS) said in a statement.

That followed a downwardly-revised 1.4-per cent drop in December – the worst performance on record for the month.

Retail sales meanwhile were up 5.3 per cent in January compared with 12 months earlier. That was the strongest 12-month reading since November 2004.

Market expectations had been for a monthly gain of 0.5 per cent and an annual increase of 4.2 per cent, according to Dow Jones Newswires.

ONS statistician Katie Davies said the pattern in retail sales during December and January had been affected by both bad weather and a government sales tax hike which took effect at the start of the year. “The underlying picture may therefore be better considered by noting that 1.9-per cent growth in January and a decline of 1.4-per cent in December combines to give a 0.5-per cent increase over these two months,” she said.