2026.02.2007:27:22UTC+00UK Retail Sales Growth Hits 20-Month High

UK retail sales volumes rose by 1.8% month-on-month in January 2026, far exceeding market expectations of a 0.2% increase and accelerating from a 0.4% gain in December. This was the strongest monthly rise since April 2024, with recent interest rate cuts and easing inflation likely bolstering consumer confidence across British shopping districts. It also marked the first consecutive monthly increase in six months, providing a timely boost to the Labour government’s efforts to reinvigorate the economy.

Growth was underpinned by robust demand in non-food stores, particularly for artwork and antiques. Online and mail-order retailers also recorded solid performances, with sales of sports supplements and jewellery reaching notably elevated levels.

On an annual basis, retail sales volumes climbed to a near four-year high of 4.5%, up from a revised 1.9% in December and well above the consensus forecast of 2.8%. Over the three months to January, sales volumes rose 0.1% compared with the previous three-month period and were 2.6% higher than a year earlier.