UK consumers defy weak outlook to ramp up their spending

British retail sales rose in January for the first time since August and by much more than expected, according to official data that suggested consumers were happy to spend despite a weak outlook for the economy.

The 1.7% month-on-month gain in sales volumes was bigger than all estimates forecast in a Reuters poll of economists which had shown a median forecast for a 0.3% increase.

Sterling jumped by almost a