A raft of high street promotions helped retail sales volumes grow last month, official figures have revealed, as shops battled for cash-strapped customers in the run-up to Christmas.
Retail sales volumes grew 0.6% month-on-month in December, the Office for National Statistics (ONS) said, compared to a revised 0.5% decline the previous month. This was slightly below the 0.7% growth forecast by the City.
The increase in sales volumes was driven by clothing chains and department stores and came as store-price inflation dropped to its lowest rate for 16 months, the ONS said.
There was evidence that spending on big-ticket items was still being held back as sales at household goods stores fell by 2.4% month-on-month, the biggest drop since April 2010.
Economists have warned the sector is set to struggle this year, despite the growth in sales last month, as shoppers continue to cut back on non-essential spending and the economy teeters on the edge of recession