Data published by the Office for National Statistics (ONS) showed that retail sales increased by 2.9% in May, offsetting the April drop (-1.8%, revised from -2.3%). This was the sharpest increase since January. Economists had expected a 1.5% increase. Sales volumes rose across most sectors, with clothing retailers and furniture stores rebounding following poor weather in April.
For the three-month period (through May), sales volumes rose by 1.0% when compared with the previous three months and fell by 0.2% when compared with the three months to May 2023.
Meanwhile, in May, retail sales excluding fuel rose by 2.9% after declining by 1.4% in April (revised from -2.0%). Consensus estimates suggested an increase by 1.3%.
The data also showed that, in annual terms, retail sales increased by 1.3% in May, partially offsetting the April drop (-2.3%, revised from -2.7%). Economists had expected a 0.9% decrease.
The ONS said that automotive fuel sales volumes rose by 2.8% m/m in May after recording the sharpest decline since October 2021 in April. Non-food stores sales volumes (the total of department, clothing, household, and other non-food stores) rose by 3.5% in May. This was the largest monthly rise since April 2021, and follows a fall of 3.0% 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. Food stores sales volumes increased by 1.2%. The data also showed the amount spent online, known as online spending values, rose by 5.4% m/m and 4.1% per annum. The proportion of online sales increased from 26.7% in April (revised from 26.5%) to 27.2% in May.