UK retail sales: UK sees January sales bonanza
Jonathan Moyes, head of Investment Research at Wealth Club, commented: “There may have been no festive cheer on the high street this Christmas, but it was certainly a jolly January. Shoppers appeared to be feeling the pinch in the run-up to Christmas, but clearly the January sales have been enough to entice shopping the splash the cash.
We must not get too carried away, however. Whilst this is excellent news for our beleaguered retailers, retail sales is a volatile data point. One month is not enough to signal a turn in consumer sentiment.
However, so long as your job is not at risk from AI, things are looking up for consumers in 2026. Inflation is slowing. It will likely hit 2% this year. Interest rates are coming down, we could see three further rate cuts this year. Wage growth, albeit slowing, is offering real terms wage increases, and the government is surely done with piling on the tax increases.
Whisper it quietly, but this could be the start of a turning point in UK consumer confidence.”