FX.co ★ UK Retail Sales Unexpectedly Rise

Retail sales volumes in the UK recorded a notable 0.4% month-on-month increase in December 2025, surpassing market predictions and countering the 0.1% decline seen in November. The growth was primarily fueled by non-store retailers, with online jewellers experiencing heightened demand for precious metals, attributed to an uptick in holiday spending. Additionally, supermarkets and automotive fuel sectors registered slight improvements. However, non-food stores, which include department, clothing, household, and other retail outlets, saw a decline of 0.9%. Internet retailing distinguished itself with a robust 1.8% increase over the month. Annually, retail sales volumes rose by 2.5%, surpassing the 1.8% uptick in November and outperforming expectations of a 1% rise. Over the three months leading up to December, sales volumes experienced a 0.3% drop compared to the previous quarter but were 2.1% higher year-on-year. For the entire year, retail trade saw a 1.3% increase in 2025, up from the 0.2% growth in 2024, with all major sectors making gains except for automotive fuel.