Retail sales up in January

Friday 17th February 2012

The volumes of sales in January 2012 increased 0.9% to 2% when compared with January 2011, according to data from the Office of National Statistics (ONS).

Retail sales in January 2012 calculated by value showed an increase of 4.4% compared with January 2011.

The figure was much stronger than forecast as many economists had expected sales volumes to fall 0.4 % and an annual rise of 0.5%.

Economists have speculated that the main reason for the jump had been internet shopping and spending in department stores and supermarkets. Prices paid by shoppers were 2.2% higher than in January 2011, the smallest annual increase since November 2009.

Many Britons have been cutting back spending over the past year as price increases outpaced wage rises and higher unemployment weighed on confidence, and the lack of consumption has been one of the main drags on economic growth.

Also released today and viewed by economists and marjket analysts of the health of spending in the middle classes, retailer John Lewis said its department store sales rose 4.1% on the year in the week to February 11.

Retail sales account for less than half of total consumer spending, and do not include the purchase of cars or eating out.

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