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UK Retail Sales Post Unexpected 0.4 Percent Increase in December
(MENAFN) UK consumer spending defied analyst predictions in December 2025, posting an unexpected 0.4% monthly gain that reversed the prior month's contraction, according to Friday data from the Office for National Statistics (ONS).
Market consensus had anticipated flat performance for December following November's 0.1% retreat, making the rebound a surprising development for economists tracking consumer behavior.
"Non-store retailers' volumes rose in December 2025, following falls in October and November, with online jewellers reporting that demand for precious metals picked up in December," an ONS statement revealed.
The surge in non-store retail channels—particularly online jewellers experiencing revived precious metals appetite—provided crucial momentum after consecutive monthly declines through autumn 2025.
"There was also a small rise for supermarkets and sales of automotive fuel, while non-food stores (the total of department, clothing, household, and other non-food stores) fell 0.9% on the month," the statistical agency noted.
Digital commerce exhibited robust strength as online transaction values jumped 1.8% month-over-month through December 2025, while year-over-year comparisons revealed an impressive 11.1% escalation.
Annual retail volumes climbed 2.5%—dramatically exceeding the 1% growth economists had projected and underscoring unexpected consumer resilience.
However, the three-month period concluding in December registered a 0.3% volume contraction, revealing underlying volatility beneath headline figures.
Full-year 2025 retail volumes advanced 1.3%, accelerating from 2024's modest 0.2% expansion and marking recovery after declines throughout 2022 and 2023.
"Despite this being the second consecutive annual rise, volumes did not recover from the 2023 fall, and remained below 2019 pre-coronavirus (COVID-19) pandemic levels," the ONS added, highlighting persistent gaps in consumer spending recovery.
Market consensus had anticipated flat performance for December following November's 0.1% retreat, making the rebound a surprising development for economists tracking consumer behavior.
"Non-store retailers' volumes rose in December 2025, following falls in October and November, with online jewellers reporting that demand for precious metals picked up in December," an ONS statement revealed.
The surge in non-store retail channels—particularly online jewellers experiencing revived precious metals appetite—provided crucial momentum after consecutive monthly declines through autumn 2025.
"There was also a small rise for supermarkets and sales of automotive fuel, while non-food stores (the total of department, clothing, household, and other non-food stores) fell 0.9% on the month," the statistical agency noted.
Digital commerce exhibited robust strength as online transaction values jumped 1.8% month-over-month through December 2025, while year-over-year comparisons revealed an impressive 11.1% escalation.
Annual retail volumes climbed 2.5%—dramatically exceeding the 1% growth economists had projected and underscoring unexpected consumer resilience.
However, the three-month period concluding in December registered a 0.3% volume contraction, revealing underlying volatility beneath headline figures.
Full-year 2025 retail volumes advanced 1.3%, accelerating from 2024's modest 0.2% expansion and marking recovery after declines throughout 2022 and 2023.
"Despite this being the second consecutive annual rise, volumes did not recover from the 2023 fall, and remained below 2019 pre-coronavirus (COVID-19) pandemic levels," the ONS added, highlighting persistent gaps in consumer spending recovery.
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