Report: UK retail sales rebound in December, may further improve.

Elliott Jordan-Doak of Pantheon Macroeconomics stated in a report that UK retail sales data for December was better than expected, with the potential for further improvement in 2026. Retail sales grew by 0.4% in December compared to a contraction of 0.1% in November, which was better than economists' average expectation of a 0.1% contraction. He said, "We believe that as policy uncertainty continues to ease and inflation falls, consumer spending should continue to recover in 2026." Jordan-Doak also stated that the Bank of England is likely to further cut interest rates to boost consumer spending.