British retail sales rebounded in December, with a better-than-expected performance for the Christmas season, new figures show.
Total retail sales, which measures the amount purchased, rose by 0.4% last month, according to the Office for National Statistics (ONS).
Although the increase was small, it was well ahead of the 0.1% decline expected by economists polled by Reuters.
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The numbers are a positive sign for retailers, who can often rely on transactions during the key Christmas month to fund remaining operations.
This was thanks to strong demand for gold and silver after a lull in November, with sales across internet retailers rising 4.4% on increased online transactions, the biggest increase since February last year.
Retail sales figures are important because they measure household consumption, the biggest expenditure in the UK economy.
Increased retail sales mean economic growth, and the government has repeatedly said it is a top priority.
The latest figures suggest consumers may have shaken off their pre-budgeting fears.
The budget submission date was delayed (November 26) due to speculation surrounding the contents of the budget. Economic contraction in Octobersaid the ONS.
Why did sales increase?
The ONS said part of the recent increase in retail sales was due to demand for metals such as gold and silver from online jewellers.
Prices for both materials reached record highs in December, meaning they are now more expensive to buy than before.
A similar trend among people considering purchasing gold is seen in september. Amid political and international uncertainty, investors tend to move money away from stocks and into investments that are seen as safer, such as gold.
As many department stores have pointed out, official statistics show that the number of people buying household goods has fallen significantly.
But consumers flocked to online shops, stalls and markets in droves. According to the figures, sales at these so-called “storeless retailers” rose 4.2% last month.
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Retail sales for the 12 months to December also fell short of expectations, rising 2.5%. A Reuters survey of economists predicted a 1.1% increase.
However, if we look at the three-month period from October to December, which is said to be the golden period for retailers, there was a 0.3% contraction compared to the previous three months.
In the previous three months, from July to September, the store had been doing well thanks to good weather and the UEFA Women’s Euro.
For 2025 as a whole, sales volumes remained below pre-pandemic levels and had not fully recovered from the drop in 2023, which saw double-digit inflation.