Retail sales volumes rose an estimated 0.3% in May, following a rise of 0.5% in April and non-store retailing sales volumes rose by 2.7% in May driven by strong summer clothing sales as a result of warmer weather.
The month saw declines in both Food (down 0.5%) and non-food (down 0.2%) store sales volumes with retail sales had been expected to fall by 0.2% (Trading Economics).
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “Retail sales volumes in May came in slightly better than expected, with better weather helping online sales of both outdoor goods and summer clothing.
“Consumer spending remains robust in the face of inflationary pressures and results from retailers themselves back this up.
“Earlier this week Next upgraded its profit expectations on the back of much stronger than expected trading.
“The big question is how much longer this can persist?
“Mortgage rates have increased significantly in recent weeks and inflation is at risk of becoming entrenched.
“This doesn’t bode particularly well for consumer confidence in the back half of the year. At that point retailers may really start to feel the pinch.
But for now, the UK consumer continues to defy the doom mongers”