UK retail sales fall sharply in January

Consumers in Britain pulled back on spending at the end of 2015 by far more than analysts had expected.

UK retail sales volumes fell by 1.0% month-on-month (consensus: -0.1%) in December and by an even sharper 1.4% when sales of petrol are excluded, according to the Office for National Statistics.

In comparison to a year ago, retail sales volumes were left standing up by 2.6% (consensus: 4.3%) and by another 1.1% in terms of quarterly rates of change.

Average store prices, including those at petrol stations, declined for an 18th consecutive month, retreating by 3.2% in year-over-year terms.

In value terms, adjusting for changes in prices that is, retail sales decreased by 1.0% versus a year ago.

“UK retail sales figures for December always had the potential to be a banana skin for Chancellor George Osborne, and he will be disappointed to see sales slide at such a critical time for the sector,” said Dennis de Jong, managing director at UFX.com, by way of an immediate reaction to the data.