UK Retail Sales Up 0.4% in December 2025

UK retail sales volumes rose unexpectedly by 0.4 percent in December 2025 compared to November, providing a brighter finish to the Christmas trading period amid signs of improving consumer sentiment.

The Office for National Statistics reported the increase on Friday, surpassing economists' forecasts of a 0.1 percent decline. The uptick was driven primarily by a 4.2 percent surge in online sales, the strongest monthly gain since February 2024, with online jewelers citing renewed demand for gold and silver. Precious metal prices have rallied to near-record levels above 4,900 pounds per ounce, fueled by global economic uncertainty and viewed as a safe-haven investment. Supermarket sales edged up 0.2 percent, and automotive fuel purchases also saw a modest increase, reflecting shifting consumer habits toward essentials during the festive season.

However, the December rebound did not fully offset earlier weaknesses. Non-food stores, including clothing, footwear and department outlets, recorded a 0.9 percent drop, the worst performance for the sector since May 2024. Sales of electrical goods, books and health and beauty products also fell, as shoppers prioritized promotions on...