UK Retail Sales Rise in May

UK retail sales volumes rose 1.4 percent in May compared to April – slightly ahead of the forecasted rise of 1.2 percent – and up 2.4 percent compared to last year.

According to the Office for National Statistics, sales of clothes and shoes have driven the volumes up in May.

Sales had dropped 2.3 percent in April, largely due to the wet weather and panic-buying of petrol in March caused by concerns over a truck driver strike.

Retailers’ recent performance is an indicator of strengthening consumer spending, which in the UK contributes to about 60 percent of the gross domestic product.

The Bank of England (BoE) hopes that falling inflation will reduce the pressure on household incomes, allowing them to spend more and boost the economy.

Source: Reuters

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.