Unlock the Editor’s Digest at no cost
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
British retail gross sales rose 1.2 per cent in April, considerably overshooting analysts’ expectations as heat climate inspired shoppers to spend extra.
Economists polled by Reuters had anticipated the quantity of products bought to rise 0.2 per cent within the month, after a revised enhance of 0.1 per cent in March.
Friday’s month-to-month knowledge from the Workplace for Nationwide Statistics confirmed that gross sales in meals shops grew strongly, which retailers attributed to the great climate, in accordance with the ONS.
The Met Workplace mentioned that final month was the sunniest April since data started in 1910.
ONS senior statistician Hannah Finselbach mentioned the climate had helped to spice up gross sales throughout most retail sectors.
“After a poor couple of months, food sales bounced back, with supermarkets reporting robust sales, while it was also a positive month for butchers and bakers, alcohol and tobacco stores,” she mentioned.
Nevertheless, clothes gross sales fell within the month, regardless of “a brighter picture for department stores and household good shops”.
Gross sales volumes rose by 1.8 per cent within the three months to April in contrast with the earlier quarter, the most important three-monthly progress in practically 4 years, the ONS mentioned. Gross sales volumes reached pre-pandemic ranges, rising 0.3 per cent above the February 2020 determine, for the primary time since July 2022.
The figures give some reassurance in regards to the well being of the patron sector, in a month that noticed sharp rises in uncertainty over US commerce tariffs and rising utility payments and taxes, equivalent to UK highway tax and stamp responsibility.
Neil Birrell, chief funding officer at Premier Miton Buyers, mentioned: “The retail sales data for April shows that the UK consumer is out and about consuming. Any concerns over energy price increases and council tax hikes don’t seem to have had an immediate impact on spending habits.”
Some shoppers benefited from the rise within the nationwide residing wage which took impact final month. Mortgage charges had additionally declined in April on expectations that the Financial institution of England would minimize rates of interest for the fourth time for the reason that summer season of 2024 in early Might. As anticipated, the financial institution lowered borrowing prices by 1 / 4 level to 4.25 per cent.
Separate knowledge on Friday from analysis firm GfK confirmed that UK client confidence rose three factors to minus 20 in Might, after US President Donald Trump’s tariff blitz resulted in a four-point drop in April.
