UK retail sales surge in May - CBI

28th May 2024 10:47

(Sharecast News) - UK retail sales jumped in May, a closely-watched survey showed on Tuesday, as selling price inflation continued to fall back.

According to the latest Distributive Trades Survey from the Confederation of British Industry, retail sales volumes grew at their fastest pace since December in the year to May, with a weighted balance of 8%. That compares to April's balance of -44.

Sales were seen at average for the time of year, with a balance of 2, the firmest outturn in eight months.

At the same time, selling price inflation eased "considerably", the CBI noted, with the balance falling to 20 from February's high of 54.

Selling price inflation is now at its lowest since August 2020.

Retailers did, however, note that sales volumes were likely to fall next month, with a balance of -4, although it remains broadly in line with seasonal norms.

Alpesh Paleja, lead economist at the CBI, said: "May's increase in retail sales adds to the swathe of data pointing to an improvement in activity over the near-term. Falling inflation and continuing real wage growth will contribute to a healthier consumer outlook, in turn supporting the retail sector further."

However, he warned that the mood remained "mixed" across the sector, illustrating "just how nascent the economic recovery is".

"All parties should use this general election campaign to embrace policies which will embed sustainable growth."

The data echoed that from the British Retail Consortium, also published on Tuesday, which showed shop price inflation had slowed to 0.6% in May from 0.8% in April.

The latest Distributive Trades Survey was carried out between 26 April and 15 May, with 56 retailers replying.