UK May retail sales +2.9% vs +1.5% m/m expected

• Prior -2.3%; revised to -1.8%
• Retail sales +1.3% vs -0.9% y/y expected
• Prior -2.7%; revised to -2.3%
• Retail sales (ex autos, fuel) +2.9% vs +1.3% m/m expected
• Prior -2.0%; revised to -1.4%
• Retail sales (ex autos, fuel) +1.2% vs -0.8% y/y expected
• Prior -3.0%; revised to -2.5%

After many months of disappointment, UK retail sales finally comes up with a beat on estimates at long last. It’s a hefty one at that but not exactly at the most opportune time, as it will have little impact in terms of consideration for the BOE’s next steps. ONS notes that the additional holiday for the coronation of King Charles III last year should also be considered when viewing the year-on-year readings.

Looking at the details, retail sales volume rose across all main sectors. Food store sales were up 1.2%, department store sales up 1.7%, and textile, clothing, and footwear store sales were up 5.4% on the month.

Overall, it’s a welcome bounce after the poor readings in April which were supposedly due to poor weather conditions affecting footfall.

This article was written by Justin Low at www.forexlive.com.