UK retail sales in February increased by 1% month-on-month, surprising analysts with sustained spending on clothing and household goods amid economic uncertainty. This marks the second consecutive month of growth, with annual sales rising 2.2%. Non-food sales surged by 3.1%, while food sales dropped by 2%. The strong performance from household goods stores indicates consumer resilience. Analysts speculate that if inflation continues its downtrend, the Bank of England may consider cutting interest rates. However, inflation uncertainties loom due to rising energy prices, potentially reversing recent gains.
UK retail sales saw a surprising rise of 1% in February despite economic uncertainty, with growth driven predominantly by clothing and household goods.
The latest data revealed a 2.2% annual growth in retail sales, contrasting with previous forecasts of a contraction, thus uplifting consumer confidence.
Non-food store sales jumped by 3.1%, and while food sales fell by 2%, household goods experienced their strongest month since April 2021.
The figures suggest potential interest rate cuts from the Bank of England if inflation continues to decrease, despite warnings of future price hikes.
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