UK retail sales spark in December

(Sharecast News) - UK retail sales rose in December, official data showed on Friday, beating expectations, as spending picked up in the run-up to Christmas. According to the Office for National Statistics, retail sales volumes increased 0.4% last month, comfortably ahead of consensus for a 0.1% decline.

Driving the rise was strong demand for precious metals alongside increased supermarket sales, both of which helped offset a 0.9% slide at non-food stores.

Over the quarter, sales were down 0.3%, due to weaker trading in October and November following a bumper summer, when retailers benefited from warm weather and the Women's Euro 2025 tournament.

But sales strengthened 1.3% over the year, up from 2024's more modest 0.2% uplift. It was the second consecutive annual rise, following falls in 2023 and 2022.

However, the ONS noted that volumes had yet to recover from the 2023 fall and remained below pre-pandemic levels.

Hannah Finselbach, senior statistician at the ONS, said: "The last three months of the year saw a slight drop in retail sales following a strong third quarter, with supermarkets and online stores both down.

"However, sales were up in December, with internet retailing doing well. Within this, online jewellers had a strong month, and told us there was strong demand for gold and silver."