Retail sales rise as better weather spurs recovery in clothing and furniture | Business News

Retail sales rose a better-than-expected 2.9% in May as increased footfall, better weather and deals brought shoppers back to the high street, according to officials.

He has been following a poor performance during the previous month as days of heavy rain reduced demand in much of the country.

Non-food stores recorded strong monthly growth in May, with a recovery in clothing and furniture sales in particular, the Office for National Statistics (ONS) said on Friday.

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Shoe, sports equipment, games and toy stores also recorded an improvement in sales volume.

Economists consulted by the Reuters news agency expected an increase of around 1.5%.

Meanwhile, the ONS has also revised retail sales figures for April.

Previously it was estimated to have fallen by 2.3%, worse than expected, but now it says the fall was 1.8%.

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Silvia Rindone of financial services giant EY said the May holidays also “provided retailers with a much-needed sales boost”.

She added: “A summer packed with high-profile sporting events such as UEFA Euro 2024 and the Paris Olympic Games, coupled with better weather and the possibility of political change, could well be the catalyst for a resurgence in government confidence. consumer.

“While these upcoming events are beyond retailers’ control, they present a golden opportunity to drive sales.”

‘Alleviation of recessive behaviors’

Economist Andrew Wishart of research firm Capital Economics said this suggested that inflation it was starting to encourage shoppers to open their wallets more.

He said: “Overall, May retail sales data showed tentative signs that strengthening real income growth, now that inflation is back on target, is feeding into stronger spending.

“As long as inflation continues to behave, this may not prevent [an interest] rate cut in August, although a strengthening of activity could mean that the pace of rate cuts thereafter will be gradual.”

Oliver Vernon-Harcourt, head of retail at Deloitte, also said the figures suggest “recessionary behaviors are easing”, with more consumers “loosening their purse strings and spending on discretionary items such as clothing and furniture”.

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