British consumers boost spending at start of 2026 as retail sales beat forecasts
British retail sales rose 4.5% in January, marking the strongest annual growth since 2022. The data suggests a rebound as consumers start to increase spending.
Insights:
The Office for National Statistics reported on February 20, 2026, that retail sales volumes in the United Kingdom 
GB rose by 4.5% year-on-year in January, marking the largest annual increase since February 2022. On a month-on-month basis, sales volumes grew by 1.8%, representing the fastest gain since May 2024. This stronger-than-expected data, which beat all forecasts in a Reuters poll, triggered an immediate market reaction as sterling strengthened following the release.
GB rose by 4.5% year-on-year in January, marking the largest annual increase since February 2022. On a month-on-month basis, sales volumes grew by 1.8%, representing the fastest gain since May 2024. This stronger-than-expected data, which beat all forecasts in a Reuters poll, triggered an immediate market reaction as sterling strengthened following the release.
