Rising retail sales suggest returning confidence

Retail sales rose for the first time since April 2011 last month, indicating that confidence is returning to the economy.

The rise was somewhat unexpected, with total sales increasing by 4.4 per cent during January compared to the same month last year.

Sales volumes were also up by two per cent, showing that it is not just increased prices behind the rise.

The strongest sectors were non-store and food, according to the statistics from the Office for National Statistics.

This boost comes at a time when Moody's has threatened to downgrade the UK's credit rating, placing it on a negative outlook, which suggests a 30 per cent chance of downgrade in the next 18 months.

But the body of evidence that confidence is returning to the economy continues to grow, with new data out this week suggesting consumer sentiment is at its highest level since August.

And improved consumer sentiment means more money being put back into the economy, which is good news for investors identifying opportunities to grow their private wealth.

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