British Retail Sales Defy Expectations with Surprise February Surge

In February, British retail sales unexpectedly rose by 1.0%, defying analysts' forecasts for a decline, due to non-food sales, despite a drop in supermarket activity. While the economy expanded by 0.1% in late 2024, households continued saving at high levels, suggesting potential for economic growth.

In a surprising turn of events, British retail sales rose by 1.0% in February, according to data released by the Office for National Statistics, contrary to analysts' predictions of a decline amid weak economic growth.

The unexpected rise, driven by non-food sales, comes despite a decrease in supermarket transactions following January's surge. The ONS revised January's growth figure to 1.4%, signaling a positive trend for finance officials like Rachel Reeves, despite longstanding weak growth figures.

Moreover, British households saved a significant portion of their income towards the end of 2024, marking the highest savings ratio since the pandemic. This surplus suggests potential economic resilience, though challenges like upcoming tax hikes and wage increases loom ahead for both consumers and retailers.

(With inputs from agencies.)