Surprise Boost in British Retail Sales Defies Forecasts

In February, British retail sales experienced an unexpected rise, with volumes increasing by 1.0% largely due to strength in non-food sales. This contradicted analysts' predictions of a decline, as per data from the Office for National Statistics. The increase marks a positive development despite ongoing economic challenges.

In an unexpected turn, British retail sales rose by 1.0% in February, according to data from the Office for National Statistics released on Friday. This increase defied analysts' predictions of a decline amidst slow economic growth.

The surge was primarily driven by non-food sales, while supermarkets experienced a drop in volumes following a January business surge. The Office for National Statistics adjusted January's increase from an initial 1.7% to 1.4%.

Household goods stores, bolstered by hardware sales, saw their largest rise since April 2021. Clothing sales benefitted from widespread discounting. Overall retail sales were up 2.2% from the previous year, surpassing forecasts of 0.5% growth. Conversely, home improvement retailer Kingfisher noted a decline in consumer sentiment due to government budget measures.

(With inputs from agencies.)