Retail sales were surprisingly buoyant in December, rising by 0.6% on the month in volume terms both including and excluding sales of automotive fuel. This was a strong result. Sales value was up by 6.2% in December compared with a year earlier, while volumes were up by 2.6%.

Though this was helped by base effects (December 2010's snows) it suggests demand was unexpectedly strong in the run-up to Christmas 2011, despite mild weather being unhelpful to clothing retailers. Volumes in the fourth quarter showed a rise of 1.1% compared with the third, which should have provided some support to gross domestic product. More here.