UK retail sales jump 2.9% in May
The amount spent online, known as online spending values, also rose by 5.4% during May 2024, and by 4.1% over the year
UK retail sales volumes rose by 2.9% in May 2024, following a fall of 1.8% in April 2024, according to the Office for National Statistics (ONS).
Sales volumes rose across most sectors, with clothing retailers and furniture stores rebounding following poor weather in April.
More broadly, sales volumes rose by 1.0% in the three months to May 2024 when compared with the previous three months. However, they fell by 0.2% when compared with the three months to May 2023.
Non-food stores sales volumes (the total of department, clothing, household, and other non-food stores) also rose by 3.5% in May 2024.
This was the largest monthly rise since April 2021, and follows a fall of 3.0% in April 2024.
Within non-food stores, there was strong monthly growth for clothing and footwear retailers, furniture stores, and sports equipment, games and toys stores. According to the data, these retailers reported improved footfall, better weather, and the impact of promotions.
Additionally, non-store retailers, which are predominantly online retailers, rose by 5.9% on the month. This was the largest monthly increase and index level since April 2022.
Commodity breakdown data indicated that the increase in May 2024 was because of strong clothing and other non-food sales.
The amount spent online, known as online spending values, also rose by 5.4% during May 2024, and by 4.1% over the year.
Lastly, the total spend (the sum of in-store and online sales) showed a smaller 3.3% rise during the month, resulting in the proportion of sales made online increasing from 26.7% in April 2024 (revised from 26.5%) to 27.2% in May 2024.
Martin Sartorius, Principal Economist, CBI said: “Another fall in inflation in May will come as welcome news to households as we move towards a more benign inflationary environment. However, many will still be feeling the pinch due to the level of prices being far higher than in previous years, particularly for food and energy bills.
“Today’s data sets the stage for the Monetary Policy Committee to cut interest rates in August, in line with our latest forecast’s expectations. However, rate-setters will still need to weigh the fall in headline inflation against signs that domestic price pressures, such as elevated pay growth, are proving slower to come down. This means that they are likely to move cautiously beyond August to avoid putting further upward pressure on inflation, especially as the growth outlook improves at home and geopolitical tensions remain heightened.”
