UK retail sector remains ‘impressively strong’ despite sales slowdown

Retail sales growth slowed last month as changeable weather hit fashion stores.

Official figures produced by the Office for National Statistics show sales volumes climbed 0.2% during the month, enough to beat market expectations and help sterling rise.

The retail sector is still 4.6% ahead of where it was a year earlier after a strong performance in April – when it grew 0.9%, boosted by unseasonably warm weather.

In May, sales at textile, clothing and footwear stores fell 1.6%, the sharpest decline since September.

But there was a better outcome for the beleaguered supermarket sector, with food store sales up 0.6% on the month, the best performance since December.

Markit chief economist Chris Williamson said: “Retail sales growth slowed in May after a sunshine-related burst of spending in April. But the underlying trend remains impressively strong and adds to the likelihood of interest rates rising later this year rather than being delayed until 2016.”

He said it added to evidence of a wider economic upturn after a slowdown in the first quarter of this year.

Samuel Tombs, of Capital Economics, said: “While retail sales volumes only edged up in May, the underlying picture looks robust.

“And with pay growth picking up, inflation set to remain below 1% for another six months and job creation still strong, there is no reason to expect growth in retail sales to peter out soon.”

Underlying quarter-on-quarter growth for retail sales continued for a 27th consecutive month.

Retail sales growth slowed last month but food sales were up.