British retail sales in December saw the largest increase in 10 months.

Data from the British Retail Consortium (BRC) for December 2024, released on Tuesday morning, showed a significant surge in retail sales within the United Kingdom during the last month of the year, recording the largest increase in retail sales in the country in 10 months.

Total retail sales in Britain rose by 3.2% year-on-year in December, achieving the biggest jump since March 2024, exceeding market expectations which had forecast a contraction of 0.2%. British retail sales had recorded a contraction of 3.4% in November.

However, British retail sales showed only a quarterly growth of 0.4%, indicating a decline in volumes when adjusted for inflation, while total retail sales for the entire year grew modestly by 0.7%.

The British Retail Consortium attributed the weak performance of retail sales over the year to declining consumer confidence and economic challenges, which were exacerbated by tax increases under the new Labour government.

Despite this, economists expect stronger consumer spending in 2025, driven by anticipated growth in real wages and higher household savings, amidst slowing inflation.

Retail sales figures from the British Retail Consortium are considered a measure of genuine changes in retail sales, excluding the impact of opening or closing new stores, as it only reflects sales performance from stores that have been open for at least a year, providing a clearer view of underlying trends in consumer spending without distortions from changes in retail space.

This measure is widely used to assess the performance of retailers in comparable and stable locations, making it a reliable indicator for evaluating real growth or decline in retail sales.