UK retail sales rise 4.6% in May

UK retail sales grew more than expected in May, official figures released on Thursday showed.

According to the Office for National Statistics (ONS), retail sales rose 4.6% year-on-year last month, exceeding expectations calling for a 4.3% expansion.

This was the 26th consecutive month of year-on-year growth, the longest period of sustained growth since May 2008 when there were 31 periods of growth.

On a monthly basis, and excluding automobiles, retail sales edged higher by 0.2% against expectations for 0.2% decline, while the previous month´s reading was revised lower to show a rise of 0.8% instead of a preliminary estimate of 1.2%.

The quantity bought in the retail industry increased by 0.2% compared with April 2015, the ONS said, adding there was growth in predominantly food stores, other non-food stores, household goods stores and petrol stations.

Average store prices including petrol stations fell 2.7% year-on-year, marking the 11th consecutive month of year-on-year price decline.

The largest contribution once again came from petrol stations which fell by 10.2%, the 21st consecutive month of year-on-year falling prices in this store type.

"The small increase in the official measure of UK retail sales in May should not be taken as a sign that the recovery in consumer spending is flagging," said Samuel Tombs, senior UK economist at Capital Economics.

"Given the outlook for further falls in unemployment, stronger wage growth and looser credit constraints, 2015 still looks set to be a good year for retailers."