LONDON (dpa-AFX) - UK retail sales declined more than expected in May as food store sales declined sharply after good weather boosted sales in April, the Office for National Statistics reported Friday.
Elsewhere, a private survey showed that British consumer confidence rose in June on improving assessment about general economic situation.
Retail sales fell 2.7 percent on a monthly basis in May, in contrast to the revised 1.3 percent increase in April. Sales were forecast to drop 0.5 percent.
Moreover, this was the biggest fall since December 2023.
Following a strong growth of 4.7 percent in April due to good weather, sales posted a monthly fall of 5 percent. Non-food store sales were down 1.4 percent.
Excluding auto fuel, retail sales slid 2.8 percent month-on-month, reversing a 1.4 percent rise in April and was also sharper than the expected drop of 0.5 percent.
ONS statistician Hannah Finselbach said the fall was due to the dismal month for food retailers, especially supermarkets, following strong sales in April.
Households reduced purchases for alcohol and tobacco with customers choosing to make cutbacks, said Finselbach.
On a yearly basis, retail sales decreased 1.3 percent, following a 5.0 percent rise in April. The sales volume, excluding auto fuel, also declined 1.3 percent in May, after rising 5.2 percent a month ago.
Despite the fall in May, sales volumes rose 0.8 percent in the three months to May from the previous three months.
The GfK consumer sentiment index rose to -18 in June from -20 in May, a survey published jointly by GfK and the Nuremberg Institute for Market Decisions showed Friday.
Households' views about the past and future personal financial situation remained unchanged from May. The major purchase index held steady at -16.
Meanwhile, the index for past general economic situation rose three points to -43 and that for future general economic situation climbed five points to -28.
'With petrol prices set to rise in the coming weeks following the escalation of the conflict in the Middle East, and with ongoing uncertainty as to the full impact of tariffs, there is still much that could negatively impact consumers,' Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company.
'With so much volatility, now is certainly not the time to hope for the proverbial 'light at the end of the tunnel',' Bellamy added.
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