Shops were given a surprisingly big boost in January as retail sales rose by 1.7% – much more than the 0.3% rise forecast by economists.

It’s the first growth since August and follows a fall of 0.6% in the key shopping month of December, according to Office for National Statistics (ONS) figures.

There has not been an increase of this size since May.

It came as food shop sales rose 5.6% – the highest amount since March 2020 when COVID-19 lockdowns began.

Shops across the food and drink sector benefitted, the ONS said, as supermarkets, alcohol and tobacco stores plus specialist shops like butchers and bakers all reported strong trading.

Money blog: What are your rights if you have bad phone signal?

Retail sales figures are significant as they measure household consumption, the largest expenditure across the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

But trading was slower at clothes sellers and other non-food retailers, as sales fell by 1.3% during the month.

Read more:
Inflation rises to a high not seen in nearly a year
Thames Water multi-billion pound debt lifeline approved

Combined with other data released on Friday showing improved consumer sentiment, the figures show a strengthening economy.

Wage rises and interest rate cuts helped to raise the longstanding consumer confidence measure by market research company GFK.

This increase had also not been expected by economists.

Neil Bellamy, consumer insights director at NIQ GfK, said: “The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory.

“The rate cut will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over.”