UK retail sales fall in February but decline less than expected

UK retail sales volumes fell in February after a strong start to the year, though sales remained higher over the three months, official data showed Friday.

According to the Office for National Statistics, the volume of retail sales declined 0.4% in February, following a revised 2.0% increase in January but beating FXStreet expectations of a 0.8% decline.

The monthly fall was driven by weaker supermarket sales after January’s rise, as well as a decline in non-store retailing, with some consumers bringing forward spending to take advantage of earlier discounting.

Despite the monthly drop, sales volumes rose 0.7% in the three months to February compared with the three months to November.

Sales were also 3.0% higher over the three-month period compared with a year earlier, while on an annual basis, retail sales volumes increased 2.5% in February, down from a 4.8% increase in January but beating FXStreet expectations of a 2.1% rise

The ONS said the three-month growth was supported by improved non-store retail performance following a weaker November, as well as strong sales of artwork in January.

However, sales volumes in February remained 0.3% below pre-pandemic levels seen in February 2020.

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