Surprise boost for shops as retail sales growth exceeds expectations

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.

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The large rise came as food shop sales rose by 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.

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.

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