Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Retail Sales Surge in May After April Washout

by June 22, 2024
June 22, 2024
Retail Sales Surge in May After April Washout

Retail sales surged in May, recording a significant recovery from April’s downturn, which was caused by unusually wet weather.

According to the Office for National Statistics, sales volumes increased by 2.9% in May, surpassing City analysts’ expectations of a 1.5% rise. This follows an upwardly revised 1.8% contraction in April.

The boost in sales was largely driven by non-food transactions, which jumped by 3.5%. Clothing sales, in particular, saw a substantial month-on-month increase of 5.4% as Britons updated their wardrobes in response to the better weather.

Analysts attributed the rise in retail sales to the near-10% increase in the minimum wage in April and the rapidly rising average pay over the past year. This financial uplift has likely encouraged higher consumer spending.

Separate data indicates that consumer confidence has climbed to its highest level in nearly three years, suggesting a continued rise in consumption in the coming months. April’s heavy rainfall, which was 60% above average, had deterred shoppers, but May brought the hottest temperatures on record since at least 1884, spurring household spending. The warm weather in June and the start of the European men’s football championship are expected to further boost retail activity.

Tomasz Wieladek, chief European economist at T Rowe Price, commented, “The large rise in the minimum wage and disposable income led households to significantly raise their retail purchases. Improving consumer confidence suggests that these trends will continue. Retail sales will remain strong going forward. The UK economy, therefore, will likely continue to experience a stronger-than-expected consumer recovery this year.”

The rise in retail sales indicates that economic growth is gaining momentum, following a 0.6% GDP increase in the first quarter. Prime Minister Rishi Sunak has emphasised the economy’s regained strength during his general election campaign.

Andrew Wishart, senior UK economist at Capital Economics, noted, “The retail sales data for May showed tentative signs that strengthening real income growth, now that inflation is back at target, is feeding through to stronger spending.”

Household consumption has been weak due to high interest rates and rising prices. Although inflation has now fallen back to the UK’s official 2% target for the first time since July 2021, the rapid price increases have left a lasting impact on living standards. The Resolution Foundation, an economics think tank, highlighted that Britain has experienced 11 years’ worth of “normal” inflation in just 36 months.

In response to the highest rate of price growth in over 40 years, the Bank of England raised interest rates to 5.25%, the highest level in 16 years. While the central bank held the base rate steady for the seventh consecutive time this week, it suggested that borrowing costs could decrease in August if economic data continues to improve.

Read more:
Retail Sales Surge in May After April Washout

0
FacebookTwitterGoogle +Pinterest
previous post
Government Borrowing in May Reaches Post-Covid Peak
next post
The benefits of advice

You may also like

The certainty of uncertainty: Business finds itself on...

October 4, 2022

Private equity firms target Evelyn Partners’ accountancy division...

October 5, 2024

Why Your Business Should Invest in Inbound and...

August 22, 2024

Shares in housebuilders soar following labour’s electoral triumph

July 7, 2024

WAF Integration with DevOps: Securing Applications in CI/CD...

December 23, 2024

The Rise of Digital Incentives: How Businesses Can...

December 2, 2024

NatWest provides debt extension for those struggling with...

January 12, 2023

Real Estate for Expats: Understanding Property Laws in...

February 27, 2024

Protecting Women at UK Business Events: The Rise...

April 3, 2024

Over 1,000 regional businesses are fending off cyber-attacks...

August 23, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved