Shops were given a surprisingly big boost in January as official figures showed retail sales rose by 1.7%.
Only a 0.3% rise had been forecast by economists polled by Reuters.
It’s the first growth after four consecutive months of contraction and follows a fall of 0.6% in the key shopping month of December, according to Office for National Statistics (ONS) figures.
The December drop was even larger than first thought. Initially, only a 0.3% contraction was recorded by the ONS.
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The large rise in January came as food shop sales rose 5.6% – the greatest amount since March 2020 when COVID-19 lockdowns began.
Shops across the food and drink sector benefitted, the ONS said, as supermarkets, alcohol and tobacco stores plus specialist shops like butchers and bakers all reported strong trading.
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Retail sales figures are significant as they measure household consumption, the largest expenditure across the UK economy.
Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.
Combined with other data released on Friday showing improved consumer sentiment the figures show a strengthening economy.
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Wage rises and interest rate cuts helped to raise the longstanding consumer confidence measure by market research company GFK.
“The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory”, said Neil Bellamy the consumer insights director at NIQ GfK.
“The rate cut will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over.”
