UK retail sales surge past expectations in November

UK retail sales rose 1.7% in November from October, beating economists’ expectations for a 0.5% increase as shoppers made the most of ‘Black Friday’ bargains.

Sales on the year also comfortably beat estimates, up 5% versus expectations for a 3% rise.

The total volume of retail sales including automobile fuel was also up 1.7% in November, surpassing expectations for a 0.6% gain.

For the three months to November, sales were 5.3% higher on the year, making their biggest jump since March.

“There are two things you need for a strong economy, spending and lending, and it seems that the first one is looking very healthy as the year comes to an end,” said James Hughes, chief market analyst at GKFX.

BNP Paribas said: "Overall, consumer spending looks set to provide a solid base for overall GDP growth at the end of the year. The retail numbers highlight that while nominal wage growth has slowed, real wage growth remains healthy, which when combined with strong employment gains, implies a good degree of spending power."