Retail sales surged last month in the biggest rise for more than a year and a half as online retailers experienced “unprecedented” demand for jewellery and strong orders of sports supplements amid the New Year health-kick.
The Office for National Statistics (ONS) said the total volume of retail sales, which measures the quantity bought, rose by 1.8% in January, up from growth of 0.4% in December and the largest increase since May 2024.
The rise was far better than expected, with most experts having forecast only a slight 0.2% increase for last month.
The ONS said online jewellers reported that demand “hit unprecedented levels” last month, with demand booming in recent months as gold prices jumped to record levels above 5,000 US dollars an ounce (£3,718).
Gold and silver have been boosted as investors target “safe haven” assets amid geopolitical uncertainty.
January sales were also helped by New Year resolutions sparking robust demand for sports supplements online, while the ONS added it was a good month for auctions of artwork and antiques.
In the three months to January, sales rose 0.1%, with the ONS revising down its estimate for November to a fall of 0.4% from the 0.1% drop previously recorded.
Experts said the latest data showed consumer confidence had rebounded following autumn budget uncertainty that weighed on retail sales in November.
Online sales rose by 3.4% last month and by 19.6% year-on-year, while non-food shops also fared well with sales up 2.2% against a 1.2% increase for food shops.