You are here: Home - Household Bills - News -

May retail sales defy expectations which could support summer rate rise

0
Written by: Paloma Kubiak
14/06/2018
Retail sales in May increased 1.3% from the previous month and given its strong performance, some analysts suggest this could strengthen the case for an interest rate hike this summer.

Year-on-year sales growth saw a sharp increase of 3.9% when compared to April’s 1.4% figure. Anecdotal feedback from retailers suggest the Royal Wedding and May’s unusually warm weather helped boost the figure.

According to the Office for National Statistics (ONS), non-store retailing showed strong growth when compared to the previous year (16.2%) and the previous month (4.5%).

Online spending for food, department and clothing stores continued to increase to a new record – 5.8% in the year, 17.4% in the month and 17.6% in the three months to May.

Following the publication of the retail sales figures, sterling reacted positively, gaining around half a cent against the dollar.

‘Artisanal shop looks like the future’

Ben Brettell, senior economist at Hargreaves Lansdown, said this is welcome news for the UK economy following recent disappointments, notably from the manufacturing sector.

He said: “Despite today’s positive report from the ONS, news from individual companies continues to paint a somewhat gloomy picture for the UK’s bricks-and-mortar retailers.

“House of Fraser and Poundworld are the latest names to run into trouble. With the most recent set of numbers from online fashion retailer boohoo.com showing a 49% jump in UK sales, it’s not difficult to work out where those high street customers have been going.

“Ted Baker’s results earlier this week were notable for showing some positive growth, but even that was driven by a 33.6% increase in online sales. However, a good result from the UK wholesale business suggests that Ted’s higher price point and quirky style are helping to insulate it from the worst of the downturn.”

Brettell added that names which survive the current turbulence will be those that “treat high street shopping as a pastime rather than an essential”.

“Just as the days of nipping out to the local bakers every morning is a thing of the past, so too is a trip to M&S for a white shirt and packet of socks – the artisanal shop looks like the future of the high street”, he said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
BLOG: Can US and Asian equities achieve perfect harmony?

This week saw the landmark summit between US president Donald Trump and North Korean dictator Kim Jong-Un. As the politics...

Close