UK retail sales rise more than expected in May, ONS reveals

UK retail sales rose more than expected in May as shoppers picked up new clothes for summer, official data showed on Thursday.

Retail sales volumes, including auto fuel, increased 6% compared to the same month a year ago, well ahead of forecasts for a 3.8% increase, the Office for National Statistics said.

April's retail sales growth was revised up to 5.2% from 4.3% due to an unusually high amount of data received late from stores.

Compared to the previous month, retail sales climbed 0.9% in May against estimates for a 0.2% gain and after an upwardly revised 1.9% increase in April.

Retail sales growth was driven by clothing sales, which rebounded from weakness in April during colder than normal weather.

As the weather improved in May, clothing sales jumped by 4.3% on the month in May, the biggest rise in over two years.

The growth came despite household confidence falling to its weakest since late 2014 in the run-up to a June 23 referendum on European Union membership.

“Even though there is plenty of uncertainty ahead of next week’s EU referendum, consumers have still been spending on the high street which is what the government needs,” said Dennis de Jong, managing director of UFX.com

“Chancellor George Osborne will be encouraged by these figures, but he and David Cameron certainly have bigger fish to fry over the next seven days.”