Surprise rise in retail sales as shoppers defy the gloom

RETAIL sales beat expectations in February as shoppers loosened their spending habits.

- By Mauricio Alencar

Volumes rose 1% month-on-month after rising 1.4% in January, according to the Office for National Statistics.

While markets expected a 0.3% decline, annual retail sales growth came in at 2.2%.

It will be welcomed by Chancellor Rachel Reeves, who spoke of an era of “national renewal” in her spring statement.

The growth comes amid bleak economic forecasts from the Office for Budget Responsibility, which has halved its UK growth forecasts for 2025 to just 1%.

The rise in monthly retail sales was largely driven by a sharp increase in household goods purchases.