British retail sales bounce back

British retail sales bounced back in February after a dismal January, helped by a record increase in household goods sales, official…

British retail sales bounced back in February after a dismal January, helped by a record increase in household goods sales, official data showed today.

The Office for National Statistics said sales volumes including automotive fuel jumped 2.1 per cent last month, the biggest increase since May 2008 and three times as fast as analysts had forecast.

Year-on-year, sales were up 3.5 per cent, the biggest increase since October and slightly faster than economists' forecast of a 3.2 per cent rise.

There was a sharp downward revision to January, where late returns and changes to data processing at the ONS caused the initial estimate of a 1.8 per cent fall in sales to be increased to a drop of 3.0 per cent, the biggest since June 2008.

January saw Britain's iciest weather in 30 years, forcing many shops and businesses to close and making it hard for shoppers to travel.

Household goods sales surged in February, rising by 11.2 per cent, the biggest monthly increase since records began in January 1988. The ONS said sales of electrical items did particularly well.

The bounce in sales coincided with a drop in the retail sales deflator, which eased to 1.6 per cent from January's 3.0 per cent, which was the highest level since September 2008.

Excluding fuel, retail sales rose 1.6 per cent on the month and were up 5.4 per cent on the year, the fastest annual growth since May 2008.

Reuters