London Daily

Focus on the big picture.
Sunday, Apr 20, 2025

Retail sales pick up as consumer confidence rises to 'highest level in a year'

Retail sales pick up as consumer confidence rises to 'highest level in a year'

Discount department stores and grocery chains led growth last month, according to official figures, but the ONS says the big picture for retail remains subdued due to the cost of living crisis.

Official figures have shown a much larger than expected pick up in retail sales last month as a closely-watched measure of consumer confidence reaches its highest level in a year.

The Office for National Statistics (ONS) reported a 1.2% rise in sales volumes in February compared to the previous month, adding that the performance took sales back to their pre-COVID era level.

It was much better than economists had predicted as only a slight uptick was expected amid the continuing cost of living crisis.

The ONS also revised sharply upwards, to 0.9%, the 0.5% volume growth it had originally recorded for January after the tough Christmas for the high street.

Its director of economic statistics, Darren Morgan, said: "Retail grew sharply in February with sales returning to their pre-pandemic level.

"However, the broader picture remains more subdued, with retail sales showing little real growth, particularly over the last eighteen months with price rises hitting consumer spending power.

"In the latest month, discount department stores performed strongly with food shops also doing well as consumers, confronted with cost-of-living pressures, cut back on eating out or purchasing takeaways.

"After rail strikes increased car travel in January, fuel sales fell back in February," he also noted.

The data was released against a backdrop of recent indications that the economy is slowly picking up, and performing better than a slew of dire forecasts had predicted.

Market research firm GfK's consumer confidence index rose to -36 in March.

While still deep in negative territory, it was its highest level for 12 months and was boosted by improving sentiment around the economy despite persistent gloom over personal finances.

The latest results were published less than 24 hours after the Bank of England indicated that it was no longer expecting a technical recession this year - defined as two consecutive quarters of negative growth.

Its shift chimed with the view of the Office for Budget Responsibility's (OBR's) latest assessment - released on budget day last week.

The more optimistic outlook followed dire predictions earlier this year from the International Monetary Fund, and other prominent organisations, that the UK would be the weakest performer within the developed world in 2023 because of the hit to consumer spending power from inflation.

A separate ONS report this week measured the consumer prices index at 10.4% in February - up from 10.1% the previous month.


Economists had widely expected an easing in the rate but the report charted upwards pressure from the salad shortage and an end to January pub drink discounts.

Food and drink inflation struck a 45-year high, the report showed, and the Bank of England later acted through another interest rate rise to try and keep a lid on the pace of price growth.

The OBR said last week that it expected inflation to ease back to 2.9% by the year's end but it is clear higher living costs will continue to prove a drag on spending well into the future.

Joe Staton, client strategy director at GfK, said of its findings: "A small improvement in the overall index score this month masks continuing concerns among consumers about their personal financial situation.

"Wages are not keeping up with rising prices and the cost-of-living crisis remains a stark reality for most."

He added: "Just having enough money to live right and pay the bills remains the number one concern for consumers across the UK."

Newsletter

Related Articles

0:00
0:00
Close
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
U.S. Tariff Escalation Sparks Global Trade Tensions
Helicopter crashes in NYC with four people on board.
Australia Dismisses China's Suggestion to Collaborate Against US Tariffs
EU Postpones Response to US Tariffs
The Trump Administration is contemplating removing Chinese companies from U.S. stock exchanges.
Violent Incidents and Public Safety Concerns Escalate in London and County Durham
UK MP Arrested on Suspicion of Rape and Child Sex Offences
UK Gears Up to Respond to US Tariffs with Industrial Strategies and Trade Initiatives
‘Rocky’ star Dolph Lundgren and his wife Emma Krokdal bask in the Miami sunshine following the actor’s lengthy health struggles.
Spain Encounters Countrywide Protests as Housing Crisis Intensifies
Alisha Lehmann's Modeling Campaign and Public Controversy Stir Debate Ahead of UEFA Women's Euro
U.S. Firms with Major International Revenue Exposure in Light of New Tariffs
President Trump Calls on the Federal Reserve to Reduce Interest Rates in Light of New Tariffs
President Trump Prolongs TikTok Sale Deadline by 75 Days
Global Markets Dive Amid Rising U.S.-China Trade Conflicts
British comedian Russell Brand faces charges of rape and several sexual assaults.
Kanye West Reveals in a New Song That His Wife Bianca Censori Has Departed from Him
Actor Jean-Claude Van Damme Accused of Having Sex with Human Trafficking Victims
Tom Cruise Pays Tribute to Val Kilmer at CinemaCon
Europe Pursues Digital Autonomy Amidst Transatlantic Strains
OpenAI Lands Unprecedented $40 Billion Funding.
×