Retail sales unexpectedly fall in December
By Michele Maatouk
Date: Friday 17 Jan 2025
(Sharecast News) - UK retail sales unexpectedly fell in December, according to data released on Friday by the Office for National Statistics.
Retail sales declined by 0.3% on the month following a downwardly-revised 0.1% increase in November. Economists were expecting a 0.4% jump.
ONS senior statistician Hannah Finselbach said: "This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected."
The ONS said falls in supermarkets were partly offset by a rise in non-food stores, such as clothing retailers, which rebounded from declines in recent months.
For the fourth quarter, sales volumes fell by 0.8% compared with the third quarter, but rose by 1.9% versus the same period a year earlier.
Alex Kerr, UK economist at Capital Economics, said: "Overall, today's release is further evidence that the economy had very little momentum at the end of last year and, at the margin, increases the downside risk to our forecast that the economy avoided a contraction in Q4 and GDP flatlined.
"But looking ahead, we doubt the economy's recent malaise will continue. We expect real household disposable income growth of around 2.3% and improving consumer confidence in 2025 to drive an acceleration in overall consumer spending growth from 1.0% in 2024 to 1.6% in 2025."
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