Retail sales rise more than expected in May.


UK retail sales rose more than expected in May, helped along by warm weather and promotions, according to figures released on Friday by the Office for National Statistics.

Source: Sharecast

Retail sales ticked up 1.2% following a 1% decline in April, coming in comfortably ahead of analysts’ expectations for a 0.5% increase. Over the year to May, sales were up 3.2%.

The ONS said retailers suggested that promotions and the hot weather in May increased sales volumes for non-store retailers and department stores.

Harvir Dhillon, economist at the British Retail Consortium, said: "May’s warm weather provided a welcome boost to retail sales. There were strong sales across clothing, footwear, household goods, and electrical household appliances as shoppers stocked up on heatwave essentials such as lighter clothing, bedding and fans. Food sales also rose year on year as people got together for bank holiday barbecues and outdoor gatherings.

"While the sunshine provided a short-term boost, retailers continue to face significant challenges. Household budgets remain stretched, consumer confidence is fragile, and operating costs are rising. To support growth and help keep inflation under control, Government must address the taxes and levies that are increasing energy costs for businesses. Without intervention, mounting cost pressures will make it harder for retailers to invest, grow and keep prices affordable for customers."

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