LONDON, Feb 20 — British retail sales rebounded in January, official data showed today, with consumers buoyed by the removal of Brexit uncertainty according to analysts.
Sales by volume rallied 0.9 per cent from the previous month, after falling in both November and December, the Office for National Statistics said in a statement.
That was the largest increase since March 2019 and beat expectations for a 0.7-per cent gain.
Consumers were reassured by December’s convincing election win for Prime Minister Boris Johnson, according to Paul Dales, economist at research consultancy Capital Economics.
Johnson’s Conservative party campaigned to “get Brexit done” — and Britain subsequently left the European Union on January 31, dispelling long-running uncertainty over Brexit.
“January’s retail sales figures showed that December’s election result gave consumers the confidence to reopen their wallets,” Dales said.
“The more recent flooding and effects of the coronavirus may hinder sales in February and March.
“Nonetheless, it still seems as though the economy turned a corner at the start of the year.”
Britain left the EU on January 31 but remains bound by its rules in a transition period that expires at the end of this year, as both sides aim to negotiate a new trading relationship. — AFP
