British retail rebound offers hope for recession-hit economy

U.K. retail sales rebounded by 3.4% after a grim December, according to the Office for National Statistics, the strongest monthly gain since April 2021.

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The "strong pick up in sales suggests the worst is now behind the retail sector and falling inflation and rising wages in 2024 will provide a strong platform for recovery," Joe Maher, assistant economist at Capital Economics, said in a note.

LONDON-Strongerthan-expected January retail sales provided a glimmer of light for the struggling British economy on Friday - and suggest that the country's recession will be short-lived, according to some economists.

Sales rebounded by 3.4% from December,according to the Office for National Statistics, the strongest monthly gain since April 2021. Economists polled by Reuters had expected a more modest growth of 1.5%.

Sales volumes increased in all areas except closing, as food shops saw the biggest boost. Consumers "spent more for less in January," the ONS said, with the total they paid rising by 3.9%.