UK retail sales growth points to pickup in consumer activity

Retail sales in the UK have grown significantly since the beginning of the year, showing signs of economic recovery. Sales increased by 1% in February after a 1.4% gain in January, exceeding the expectations of analysts, who predicted a 0.4% decline.

Observing the growth of household incomes and analyzing statistical data, RSM UK economist Thomas Pugh noted the revival of consumer activity. The reason for this could be the increase in disposable income per capita by 1.7% in the last quarter of 2024 due to the steady growth of wages. At the same time, the share of savings reached a record 12%, the expert said.

Having cut spending last year, British consumers have been saving against the backdrop of an unstable economic situation, Bloomberg analysts note. Comparing the situation with the US, where spending contributed to economic growth, experts point to the contrasting behavior of the British people. However, the positive momentum in the retail sector is encouraging.

Earlier, retailer Next Plc raised its forecasts, confirming the trend of reviving consumer demand.