# ‘Unprecedented’ demand for jewellery helps retail sales surge in January

By Aarin Chiekrie — 2026-02-20

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “The FTSE 100 has opened higher this morning, supported by news of a significant reduction in public borrowing and a surge in January retail sales.

“For context, the UK Government almost always runs a budget surplus in January, but this year’s £30.4bn was the largest on record, well ahead of market expectations and more than double the prior year’s level of £14.5bn.

“The 1.8 per cent month-on-month uplift in retail sales volumes was also well ahead of forecasts for 0.2 per cent growth, driven by gains across all major categories except department stores.

“That leaves sales volumes at their highest level since August 2022.

“But with employment growth flagging and wage growth slowing, households likely won’t be able to maintain this level of spending for long.”

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