British retail sales grow as consumers spend on summer goods

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British retail sales unexpectedly grew last month, boosted by spending on summer clothing and outdoor goods despite high inflation, official data showed.

The quantity of goods bought in Great Britain rose 0.3 per cent between April and May, following a 0.5 per cent rise in the previous month, according to data published on Friday by the Office for National Statistics. That was stronger than the 0.2 per cent contraction forecast by economists polled by Reuters.

ONS senior statistician Heather Bovill said online shops did “particularly well selling outdoor goods and summer clothes, as the sun began to shine”. May also saw a return to growth for fuel sales after a dip in April.

She added that sales in garden centres and DIY stores also grew, as the “good weather encouraged people to start home and garden improvements”.

In the three months to May, sales were up 0.3 per cent compared with the previous three months, showing improvement after sales contracted throughout last year.

Separate data released on Friday showed UK consumer confidence rose for the fifth consecutive month in June to the highest level since January 2022.

On Thursday, the Bank of England raised interest rates to 5 per cent, the highest since 2008.

In the rate-setting meeting’s minutes, the bank noted the strengthening of most indicators of household spending and “continued resilience in demand”.