UK Retail Sales Rise in May Amid Warm Weather and Holidays, but Future Outlook Uncertain

Retail sales in the UK increased by 0.3% in May, driven by spending on outdoor goods and summer clothes due to warm weather and holidays.

Food store sales declined as supermarkets increased prices, and petrol sales increased by 1.7%.

The figures cover the month when mortgage rates increased further in response to rising inflation.

A survey of shopper sentiment showed that consumer confidence is at its strongest in 17 months and has grown for the fifth month in a row.

However, a recent interest rate rise and shock inflation figures may affect households' disposable incomes in the coming months.

Some experts predict a boost in real disposable incomes due to a sharp fall in energy prices, while others anticipate a recession.