UK retail sales rise more than expected in May

(Sharecast News) - UK retail sales rose more than expected in May, according to figures released on Friday by the Office for National Statistics. Sales rose 2.9%, versus expectations for a 1.5% jump. This followed a 1.8% decline in April - when rain kept shoppers away from the high street - which was revised from a 2.3% fall previously reported.

The ONS said sales volumes rose across most sectors, with clothing retailers and furniture stores rebounding following the poor weather in April.

The data showed that non-food store sales volumes - the total of department, clothing, household, and other non-food stores - rose 3.5% in May. This was the largest monthly rise since April 2021, and followed a 3% fall in April.

Within non-food stores, there was strong monthly growth for clothing and footwear retailers, furniture stores, and sports equipment, games and toys stores. The ONS said retailers reported improved footfall, better weather, and the impact of promotions.

On the year, retail sales were up 1.3% in May and were 0.5% below their pre- pandemic level in February 2020.

The news came alongside the latest GfK survey, which showed that UK consumer confidence strengthened in June as hopes for the economic recovery gained ground.

GfK's consumer confidence index came in at -14, up three points on May and well above June 2023, when it was -24.

Within that, confidence in the economic situation over the next year jumped six points to -11.

Joe Staton, client strategy director at GfK, said: "While June's reading of -14 is the third month in a row that confidence has increased, the headline score remains negative owing to the difficulty so many have experienced, as the unrelenting cost of living crisis batters household budgets.

"Nevertheless, consumer confidence continues its robust long-term upwards trend this month, and has recovered significantly since the record low of -49, in September 2022.

"Consumers like financial certainty, and this has to be the cornerstone if we are to see confidence to break out into positive territory."