Proactive Investors - Retail sales see largest monthly rise since April 2021.
This is what Heather Bovill, deputy director for surveys and economic indicators at the ONS, said of today’s retail sales beat: “After a very weak December, retail sales rebounded in January with the largest monthly rise since April 2021.
“This means that overall sales have now recovered to pre-December levels, although if we look at the broader picture, they are still below where they were pre-pandemic.
“Sales increased across nearly all retail sectors, and it was a particularly strong month for supermarkets.
Household goods stores, sports shops and department store retailers were amongst those reporting robust trading due to January sales promotions. A fall in prices at the pump also meant a solid month for fuel sales.
“Clothing shops were the only area not to see growth this month.”
The good news propelled FTSE 100 futures higher, with the lead index expected to open 46 points higher at 7,645.
Blue chips on the front foot
Blue chips are expected to cap the week off on a positive note, with FTSE 100 futures pointing to a 37-point gain to 7,636 when markets open at 8am.
The lead index closed nearly 30 points higher yesterday, suggesting that the market is not spooked by the technical recession implied in yesterday’s gross domestic product (GDP) print for January.
In better macroeconomic news, data released this morning showed retail sales in the UK increased 3.4% month on month in January, smashing the 1.5% forecast.
Year on year, sales increased 0.7% against -1.4% expectations.
NatWest Group PLC (LON:NWG) and Segro plc are in focus on the company news front, with final results due for both.