World Cup boosts retail sales

Thursday 17th June 2010, 9:32AM BST.

World Cup boosts retail sales

Retail sales rose six times faster than expected in May as consumers snapped up televisions from electrical goods stores ahead of the World Cup.

The Office for National Statistics said there was no growth in retail sales in April, revising down its initial reading of 0.3 per cent.

But underlying growth picked up in May. Sales volumes including automotive fuel rose 0.6 per cent last month and 2.2 per cent on the year. Analysts had forecast a rise of 0.1 per cent on the year for an annual rise of 2.0 per cent.

Excluding fuel, retail sales were 0.5 per cent higher on the month and were up 3.4 per cent on the year.

The three-month on three-month rolling rate rose to one per cent from a flat reading in April – its strongest since October 2009.

The figures suggest that consumer spending could give a boost to second quarter economic growth, but the outlook remains uncertain given recent falls in consumer confidence and the prospect of severe government spending cuts.

The ONS said sales at household goods stores rose 1.7 per cent on the month, with electrical goods performing strongly.

Sales of televisions are likely to have helped the month’s figures as soccer-mad Britons splashed out on the latest technology before the World Cup in South Africa.

Food stores saw their biggest monthly rise in sales since June 2009. Clothing and footwear, however, suffered their worst month since November 2009.

The price deflator, which measures how much retailers are hiking prices, eased to 2.3 per cent on the year in May from 2.9 per cent in April.



TWITTER

Shropshire Star on Twitter Shropshire Star on Twitter

Keep updated with the latest breaking news and content on our Twitter feed.

Lifestyle

Interactive Dining Out map Interactive Dining Out map

Hundreds of reviews by the Shropshire Star and Express & Star's teams to help you decide where to eat.

Entertainment

All the film reviews All the film reviews

Before you plan a trip to the pictures, get our critics' verdicts on all the latest movie releases.

OUR NEW APP

Get the new Shropshire Star app Get the new Shropshire Star app

Download the Shropshire Star’s new app to your iPad or iPhone to get one week of access to our digital newspapers absolutely FREE.