Surprise jump in retail sales lifts the pound

RETAIL sales unexpectedly rebounded in April despite widespread fears that the UK is at risk of a recession.

The Office for National Statistics revealed a 1.4pc rise in retail sales last month, defying economists’ expectations for a 0.3pc drop.

The news pushed the pound higher against the dollar and the euro.

The official data were all the more surprising given they cover a month when millions of families faced eye-watering rises in their energy bills, alongside a sharp jump in National Insurance.

However, the rise was driven by spending on alcohol, confectionary and tobacco in supermarkets, which, the ONS suggested, could be “possibly due to people staying in more to save money”.

Spending on those items had plunged in the early months of 2022 as people returned to pubs and restaurants amid easing fears about Covid. A return to at-home entertainment would be a further worrying sign of ebb- ing confidence.

Separate figures from GFK yesterday showed consumer confidence falling to the lowest level on record.

Nina Skero, from the Centre for Economics and Busi- ness Research, said: “It’s not as positive as the headline figure suggests. What drove this better-than-expected reading are further signs that consumers are expecting a significant slowdown.”

Monthly retail figures can be volatile, meaning a single month of growth cannot be taken as a sign of a recovery.

Sales were down 4.9pc from a year earlier. They are also weaker on a threemonthly basis, falling 0.5pc compared with November-january when fuel is excluded.