UK retail sales rise by more than expected 1.2% in May, official data shows

[LONDON] British retail sales volumes rose by 1.2 per cent in monthly terms in May, official figures by the Office for National Statistics showed on Friday (Jun 19).

A Reuters poll of economists had mostly expected a monthly rise of 0.5 per cent in sales volumes.

Compared with the year-ago period, volumes were 3.2 per cent higher, against economists’ expectations of a 1.9 per cent rise.

Earlier on Friday, a survey showed consumer confidence held steady in June.

However, younger people turned the least optimistic in two years about the economy and their personal financial situation, and households were the least willing to make big-item purchases since January 2025.

Major British retailers have highlighted that the Middle East conflict is still creating uncertainty for consumers. While they noted some grounds for optimism following US President Donald Trump’s interim deal with Iran, they are continuing to monitor closely the impact on their costs.

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Supermarket groups Tesco and Morrisons both reported a slowdown in sales growth since the start of the conflict.

Industry leader Tesco said a good spell of weather would give more of a boost to sales than England and Scotland performing well in the men’s football World Cup. REUTERS