Hungry shoppers boost retail sales in May

Retail sales were up significantly in May, driven in large part by a 3.5% rise in supermarket food sales according to Office of National Statistics (ONS) data.

Hungry shoppers boost retail sales in May
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The amount spent by buyers also increased by 3.4%, the strongest gain for two years and boosted by promotions during the month. 

Overall retail sales were up 2.1% on the previous month and 1.9% year-on-year. April saw a decline of 1.1% in high street sales as a result of bad weather discouraging shoppers.

The data showed that the increase was widespread across most stores, with summer promotions contributing significantly to the uptick.

Online sales are continuing to grow, rising 4.3% across the month taking total annual growth to 10.3% on last year’s figure. Online shopping now accounts for 9.7% of total retail sales.

Not all good news

Uk factory orders only reported a marginal increase and companies became less confident about future prospects.

Motor manufacturers reported an 8.4% drop in output in May, blaming the ongoing European recession for continuing weak demand.

The number of vehicles produced, 129,355, was still above pre-recession levels, but output for the first five months of the year was down 0.6% on the same period last year.

How has the economy reacted to the Fed’s QE tapering talk? Find out here

 

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