Overview

• The Office for National Statistics reported a 2.7% fall in total retail volumes in May, exceeding the 0.7% decline economists had forecast.
• Food sales plunged by 5%, marking a 'dismal' month for supermarkets after April gains, while clothing and homeware dropped by 1.8% and 2.5% respectively.
• Online retail sales fell for a second month, with clothes and footwear down 3.1% as consumers cut discretionary spending.
• Despite May’s fall, quarterly retail volumes rose 0.8% in the three months to May, reflecting lingering momentum from earlier in the year.
• Retailers caution that rising employers’ national insurance contributions and new labour law costs could translate into higher consumer prices.