UK Retail Sales Bounce Back In April Despite Clothing Hit

UK Retail Sales Bounce Back In April Despite Clothing Hit

British retail sales bounced back much more strongly than expected in April, despite cold weather dealing a big blow to spring clothing sales compared with last year, official figures showed. Retail sales volumes rose 1.3% on the month in April, the Office for National Statistics said, well above economists' average forecast of 0.5% growth. The ONS also significantly revised March's figures, showing retail sales fell just 0.5% on the month, a much smaller decline than the 1.3% drop it had previously estimated, due to more late data than normal from some large stores. Compared with a year earlier, sales volumes were up 4.3%, beating all forecasts in a Reuters poll. "Clothing stores remain the main drag on growth in the retail sector, with sales hampered by unseasonal weather. However... sales increased in April compared with March as lower prices boosted sales," ONS statistician Melanie Richard said.

Consumer spending has been a major driver of Britain's economic expansion over the past three years, but household confidence has faltered slightly in recent months in the run-up to a June 23 referendum on European Union membership. Colder than usual weather has also dented spending in March and April, hurting demand for spring and summer clothes, according to the ONS and earlier surveys from the British Retail Consortium and the Confederation of British Industry. The ONS said clothing sales were 6.3% down on the year, the sharpest drop in four years, although they rose 1.3% on the month due in part to price reductions.