Warm weather and promotions boost UK retail sales in May

LONDON, June 19 (Reuters) - British retail sales rose more than expected in May, boosted by good weather and promotions from retailers, despite concerns about the war in Iran pushing up the cost of living, official data showed on Friday.

Sales volumes in May were up 1.2% after falling by 1.0% in April, the Office for National Statistics said, well above economists' forecasts of a 0.5% rise in a Reuters poll.

Compared with a year earlier, volumes were 3.2% higher, against economists' expectations of a 1.9% rise.

Excluding petrol, overall sales volumes were up 1.2% in May from April, and rose 4.6% in annual terms.

"Retailers received a boost in May, as warmer weather and the half-term holidays encouraged more people to head out and spend. Some areas did especially well, with clothing and online retailers showing strong demand. That said, consumers are still being cautious with their money and choosing what to buy more carefully," Sandra Prince, head of consumer at Lloyds Bank, said.

"Retailers are trying to keep prices low for customers despite ongoing cost pressures, using promotions and a strong focus on value. With the World Cup and the busy summer shopping season ahead, they will be hoping this helps continue the momentum."

Earlier on Friday, a survey showed consumer confidence held steady in June but younger people turned the least optimistic in two years about the economy and their personal financial situation, and households were the least willing to make big item purchases since January 2025.

Major British retailers have highlighted that the Middle East conflict is still creating uncertainty for consumers. While they noted some grounds for optimism following U.S. President Donald Trump's interim deal with Iran they are continuing to monitor closely the impact on their costs.

Supermarket groups Tesco TSCO.L and Morrisons both reported a slowdown in sales growth since the start of the conflict. Industry leader Tesco said a good spell of weather would give more of a boost to sales than England and Scotland performing well in the men's soccer World Cup.