UK retail sales volumes held up better than expected in May, according to government data on Friday, boosted by sunny weather.
The Office for National Statistics said retail sales fell 2.1% annually in May, easing from a downwardly revised fall of 3.4% in April. The market had been expecting a 2.6% fall for May, according to FXStreet-cited consensus.
April's reading was previously reported as a 3.0% decline.
From the previous month, sales ticked up 0.3% in May, slowing from a 0.5% rise in April. However, the reading was better than market consensus, which had forecast a 0.2% decline.
Non-store retailing sales volumes rose 2.7% in May, after a 0.8% rise in April.
"This was because of strong sales by online retailers selling outdoor-related goods and summer clothing. Feedback from retailers suggested that warm, sunny weather in the second half of the month helped boost sales," ONS said.
Food store sales volumes fell 0.5% in the month, with the ONS noting "some anecdotal evidence of increased spending on takeaways and fast food" on account of the extra bank holiday.
"However, retailers also indicated that increased cost of living and food prices continued to affect sales volumes," the ONS added.
Excluding fuel, sales fell 1.7% annually in May, compared to a downwardly revised fall of 3.0% in April. On a monthly basis, non-fuel sales edged up 0.1% in May, slowing from a 0.7% rise in April from March.
Consumers Hold Up
Meanwhile, consumer confidence in the UK has climbed in June, despite red-hot inflation, amid growing optimism on personal finances.
GfK's consumer confidence index increased three points to negative 24 in June, from a tally of negative 27 in May. It marks the fifth monthly improvement in-a-row.
Despite "fierce economic headwinds", three measures were up, while one was down and one was unchanged.
The index measuring changes in personal finances during the last 12 months was up five points on-month at minus 15, eight points better off a year prior.
The general economic situation index during the last 12 months was unchanged monthly at minus 54. It was 11 points higher than in June 2022, however.
The major purchase index, an indicator of confidence in buying big ticket items, was down one point to minus 25 in June, from minus 24 in May, however. It was 16 points higher than the same time last year.
"The most telling finding is how we see our personal financial situation in the coming year – the money going in and out of our bank accounts – which shows a healthy seven-point increase. This is a whisker away from pushing into positive territory, something we have not seen since December 2021, and it's also the third consecutive monthly increase – all of which is good news for the future," said GfK Client Strategy Director Joe Staton.
"Consumers are showing remarkable resilience in the face of inflation that is currently refusing to yield. This is the best showing for the Overall Index Score for the past 17 months and, if consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth."
The UK Consumer Confidence Barometer is conducted by GfK. This month's survey was conducted among a sample of 2,000 individuals aged 16 and over.
Interviewing was conducted between June 1 and June 14.
