LONDON, Feb 16 Reuters British retail sales rose by a strongerthanexpected 3.4 in January, according to official figures that showed signs of strength among consumers a day after data confirmed the country39;s economy entered a recession last year.

Economists polled by Reuters had forecast that sales volumes would increase by a median 1.5 on a monthly basis.

January39;s jump the biggest since April 2021 followed December39;s 3.3 fall, the most severe since January 2021.

Overall, todays release was stronger than expected and suggests the drag from higher interest rates on consumer spending is fading fast and points to the economy soon moving out of recession, Joe Maher, an economist with Capital Economics said.

Data published on Thursday showed Britain39;s economy slipped into a recession in the second half of 2023 but it is expected to grow moderately this year as inflation cools, wages rise and interest rates are forecast to fall.

After a very weak December, retail sales rebounded in January with the largest monthly rise since April 2021, Heather Bovill, deputy director for surveys and economic indicators at the Office for National Statistics ONS, said.

This means that overall sales have now recovered to preDecember levels, although if we look at the broader picture, they are still below where they were prepandemic.

Sterling edged up against the dollar and euro after the data was published.

Compared with a year ago, sales volumes were 0.7 higher.

The ONS…