UK retail spending rises in May as clothing sales rebound, BRC reveals

UK retail spending rose in May after two flat months as shoppers stocked up on clothing for the summer, the British Retail Consortium (BRC) said on Tuesday.

Spending increased 1.4% in May compared to a year ago, in line with the 12-month average of 1.5%.

Helen Dickinson, chief executive of BRC said clothing sales made a comeback after suffering declines in April as consumers updated their wardrobes for the warmer weather.

“However, with signs that the UK’s economy is slowing it’s unlikely that this is the beginning of a complete reversal of fortunes,” she said.

“The uncertain outlook means that customers will remain cautious with their spending, therefore we expect sales figures to remain volatile for the time being.”

On a like-for-like basis, excluding changes in the amount of retail space open to shoppers over the past 12 months, the BRC said sales grew 0.5% in May compared with a 0.9% fall in April. Analysts had pencilled in a 0.3% rise in May.

Howard Archer, chief UK and European economist at IHS Global Insight, warned: “Should the UK vote to leave the EU in June’s referendum, the strong suspicion is that consumer spending would be severely pressurized for some time as a consequence of increased uncertainty and likely higher unemployment.

“It is also very possible that purchasing power could be squeezed by inflation being pushed up markedly by a sharp fall in sterling.”