UK Retail Sales Soar in April
UK Retail Sales Soar in April, Data Released May 23, 2025
On May 23, 2025, the Office for National Statistics (ONS) released its latest Retail Sales Index, showcasing a robust performance in the UK’s retail sector. The seasonally adjusted retail sales volume for April reached 1.2% month-on-month (MoM), significantly surpassing market forecasts of 0.3%. Core retail sales, excluding automotive fuel, hit 1.3% MoM, compared to expectations of 0.1%. This marks the fourth consecutive month of growth, a streak not seen since the post-COVID recovery in 2020, as reported on Friday, May 23, 2025. Year-on-year, retail sales volumes reached 5.0%, exceeding the anticipated 4.5%, while core retail sales achieved 5.3%, above the expected 4.4%.
The surge was largely driven by food sales, which reached 3.9% MoM, fueled by sunny weather, as the Met Office reported April 2025 as the sunniest on record. Non-food sales, however, saw a slight decline, reaching -0.7% MoM, with weaker performance in clothing and household goods. Online spending values reached 2.8% MoM, pushing the proportion of online sales to 26.8% from 25.8% in March. This growth, announced today, reflects improved consumer sentiment, supported by rising wages and favorable weather conditions, as noted in posts on X and various analyses.
The data release on May 23, 2025, sparked optimism in financial markets, with the British pound strengthening to around $1.27. Analysts attribute this performance to seasonal factors, including warmer weather boosting footfall, and recent monetary policy easing by the Bank of England. Despite global trade uncertainties, the retail sector’s strength suggests a resilient UK consumer base. However, forecasts from the Confederation of British Industry indicate a potential slowdown in May, with retailers expecting a 33% drop in sales volumes. The data, published today, underscores a positive moment for the UK economy, though challenges like inflation and geopolitical tensions remain.
