British retail sales grow 1.7% in February

Britain's retail sales quantity including auto fuel increased 1.7 percent in February of 2014, compared with that of January, said Office for National Statistics on Thursday. The growth rate is significantly better than the market consensus of 0.5 percent, as well as the revised 2 percent decline in January. Compared with the same month of last year, the quantity bought increased by 3.7 percent. To split the industry data, however, food sales rose 2.1 percent from January, contributing around half the overall monthly increase, said ONS. In amount spent term, retail industry's sales in February increased by 2.5 percent on year-on-year basis, and by 1.3 percent comparing with January 2014, data showed. The amount spent online grew by 12.4 percent in February 2014 compared with February 2013 and by 2.5 percent with January 2014, data also showed. "The monthly retail sales figures have been volatile recently, and some of February's strong growth reflects the fact that January's chunky drop in sales was revised from 1.5 percent to 2 percent," said Samuel Tombs, UK Economist at Capital Economics in his analysis piece. Nonetheless, "the outlook for retail spending continues to look bright," as further increases in employment, renewed rises in real pay and loosening credit conditions should help to ensure that the recovery in retail sales maintains its strong pace over the coming quarters, forecasts Samuel. Martin Beck, senior economic adviser to the EY ITEM Club, also commented:"With growing employment and rising house prices boosting the 'feel good' factor among consumers, the foundations for a continued recovery in retail spending continue to look solid."