According to data released by the Office for National Statistics (ONS) on Friday, British retail sales showed unexpected resilience in February, despite adverse weather conditions affecting

in-store purchases. This trend adds to indications of the economy's rebound from the mild recession experienced last year.

The ONS reported that retail sales volumes remained flat, maintaining a 1.3% deficit compared to pre-pandemic levels in 2020. Economists surveyed by Reuters had anticipated a 0.3% decline in sales volumes for the month.

February's stagnant figures follow a period of volatility, with sales volumes plummeting by 3.5% in December post a lackluster Christmas trading period, only to rebound with a 3.6% surge in January.

Assistant economist at Capital Economics, Alex Kerr, noted that the data underscores the ongoing recovery in retail activity and potentially signals broader economic revival. Factors such as potential interest rate cuts, increased real household incomes due to lower inflation, and the forthcoming reduction in national insurance taxes in April are expected to sustain the momentum in consumer spending throughout the year.

Heavy rainfall contributed to declines in sales at food and household goods stores but fueled growth in online shopping. However, clothing sales saw a significant uptick last month, registering a 1.7% increase, marking the largest surge since December 2022. This rebound followed a 0.7% decline in January.

Comparatively, overall sales volumes were 0.4% lower than the same period last year.

In a separate report on Friday, a survey indicated that British consumer sentiment remained steady in March. Interestingly, households expressed optimism about the outlook for their personal finances for the first time in over two years. Photo by Niki Odolphie from Frome, England, Wikimedia commons.