The UK economy experienced a rebound in November, with a growth rate of 0.3%, following a decline in October. The Office for National Statistics reported that the growth was driven by increased car leasing and video game sales, indicating a positive impact from Black Friday spending. This growth is a positive sign for the retail sector, suggesting that the annual sales event had a significant impact on boosting consumer spending and driving economic growth.
Despite the challenges faced by the UK economy, such as inflation and uncertainty, the return to growth in November provides some optimism for the future. The retail industry, in particular, benefited from the increased consumer activity during Black Friday, which contributed to the overall economic rebound.
In January, UK retail sales continued to rise, surpassing forecasts and indicating a stabilization of the economy. The Office for National Statistics reported a 2.2% increase in retail sales, exceeding the estimated 0.8% growth. This growth is seen as a positive sign for the UK economy, which has been impacted by the COVID-19 pandemic and Brexit. The increase in retail sales is expected to provide a boost to the overall economic recovery.
Retail sales volumes in Great Britain rose 3.4% in January after a 3.3% fall in December. Food sales volumes increased by 3.4% in January, with department store sales jumping by 5.4%. The shift towards discounting moments like Black Friday impacted the traditional 'golden quarter'. Despite the rebound, retail sales volumes in the three months to January were down by 0.2% compared to the August to October period. Analysts note that people are still paying more for less due to inflationary price hikes, impacting consumer confidence. The rise in retail sales in January is seen as a positive sign, especially in supermarkets, indicating a slow emergence from economic challenges.
Official figures showed sales volumes on the British High Street were up 2.9% in May after a fall of 1.8% in April, beating economists' expectations. Sales also rose by 1% over three months and 1.2% year on year (excluding fuel). However, the year-on-year figure is the first positive in three months, and sales still remain below their 2021 levels. The British Retail Consortium highlighted this context. The positive sales figures and rising consumer confidence may provide a boost to the previously stagnant consumer economy for the new government. [1412fa7d]