Retail sales blow past expectations in sign UK economy is on the turn
UK retail sales rebounded last month, according to fresh data, after a rainy April saw a slump in high street spending.
Retail sales volumes rose by 2.9 per cent in May 2024 with strong sales across clothing retailers and furniture stores, the Office for National Statistics said today.
Economists had expected a 1.8 per cent month on month hike.
Non-food stores sales volumes, which includes clothing and household items, rose by 3.5 per cent in May – the largest monthly rise since April 2021.
Analysts noted that sales will have likely been boosted by the May bank holidays.
The May data comes after a drizzly April led to drop in sales, falling by 1.8 per cent. This was revised from a 2.3 per cent fall that was previously reported.
Retail sales for the quarter were also up, rising by one per cent in the three months to May compared with the three months to February.
Commenting on the figures, Danni Hewson, head of financial analysis at AJ Bell, said: “People have started to feel the benefit of falling inflation and are feeling more confident about spending the few extra pennies they’re getting in their pay packets thanks to the cut in National Insurance and the increase in the National Living Wage.”
Matt Jeffers, the retail strategy and consulting managing director for Accenture in the UK & Ireland, said retail sales growth was likely to continue in the coming months.
“Big events this summer, including the Euros and Taylor Swift’s Eras Tour, should provide a further boost for sales as consumers prioritise spending on experiences and events,” he said.
“Retailers will have also been planning how to capitalise on these moments with new marketing and value propositions which, coupled with a more settled weather forecast, may help to boost sales in the months ahead.”
News of the jump in retail sales came alongside new figures released this morning showing increasing consumer confidence among Brits.
GfK’s overall consumer confidence measure increased by three points in June to hit -14, the third consecutive month of improvement.
Respondents were much more confident in the prospects for the economy over the coming year, with confidence in the general economic situation rising by six points to -11.
Both measures indicate that the economy is continuing its recovery after falling into a shallow recession in the second half of last year.