- Office for National Statistics
The UK retail sales declined less than expected in February after increasing the most in more than two years in January due to post-Christmas sales. Retail sales volumes fell 0.4% last month following the 2.3% surge in January, according to the Office for National Statistics. Economists, however, had predicted a 0.7% decline. Compared with a year earlier, sales in February soared 3.8%, slowing from a growth rate of 5.4% in January.
British consumer demand has been sturdy and has supported economic growth over the past couple of years, boosted by record employment, modestly increasing wages and near-zero inflation, all of which have provided households with more disposable income. Last month the BoE predicted household consumption would increase by 2.75% this year, the same as in 2015 and faster than the economy as a whole would expand. However, there have been some signs of a slowdown. Figures from the British Retail Consortium showed annual growth in retail spending decreased to 1.1% in February from 3.3% in the prior month. Moreover, ONS figures showed the value of retail sales rose by 1.4% on the year in February. The ONS said sales in the three months to February had suffered due to the steepest decline in clothing sales since December 1990, which plunged by 3.4%.
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