U.K. retail sales began the second quarter with more momentum the economists forecast.
The volume of goods sold in stores and online rose 1.3 percent in April from March, more than double the 0.6 percent increase forecast in a Bloomberg survey. Food sales rose 0.1 percent and non-food sales grew 2.5 percent, with all retail categories showing increases. Excluding auto fuel, retail sales rose 1.5 percent, also more than predicted.
The increase follows two months of declines, although the fall in March was revised to just 0.5 percent from 1.3 percent. In the three months through April, retail sales grew 0.3 percent, the weakest pace since September 2014.
The figures paint a stronger picture than recent surveys and trading statements from the high street. Clothing merchant Next Plc cut its sales forecast for a second time this month, shortly after the collapses of department-store chain BHS Group Ltd. and formalwear retailer Austin Reed. GfK’s measure of household sentiment fell to its lowest since 2014 last month as the referendum on European Union membership looms.
The pound rose following the data and was at $1.4661 as of 9:36 a.m. London time, up 0.4 percent on the day.
Clothing sales rose 1.3 percent on the month, helped by price discounting, the ONS said. At the same time, cool spring weather hit demand for fashion lines. They fell 6.3 percent from a year earlier, the biggest annual drop since 2012. Overall sales rose 4.3 percent on the year.
Retail sales account for almost 6 percent of gross domestic product and today’s figures suggests they made a contribution to growth in the first quarter, when they rose 0.9 percent. Measured by the deflator, prices at stores and petrol stations fell 0.2 percent in April from March and by 2.8 percent on the year.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.
