According to the most recent retail statistics, customers have been spending a lot of money on new clothes and other items to enjoy the summertime.
The Office for National Statistics (ONS) reported that sales volumes increased by a stronger-than-expected 0.3 percent after the sun came out in the second half of May.
According to the ONS, garden centers and online retailers did particularly well.
Sales of fuel increased compared to April, but fewer people bought food because the price of food kept rising.
As the sun started to shine, Heather Bovill, senior statistician at the ONS, said that retail sales "grew a little in May, with online shops doing particularly well selling outdoor goods and summer clothes.".
The good weather encouraged people to start home and garden improvements, which led to growth in garden centers and DIY stores. ".
In May, food sales decreased by -0.5%. The additional bank holiday last month may have contributed to price pressures as well as an increase in takeout orders or pub visits, according to the ONS.
Consumer spending overall is still slightly lower than it was prior to the pandemic. However, as a result of rising prices, their overall spending has increased significantly.
The rate at which prices are rising has slowed from over 10% at the beginning of the year to 8 point 7 percent in May, but prices are still rising.
The Bank of England raised interest rates by half a percentage point to 5% on Thursday in an effort to reduce demand and lower prices. Since December 2021, interest rates have been rising; however, there does not yet appear to be much of an impact on consumer spending.
Retail sales in the UK were better than anticipated, which may help to explain the Bank of England's jumbo-sized interest rate increase, according to Premier Miton Investors' chief investment officer Neil Birrell.
It's difficult to imagine that stricter policy won't begin to have a noticeable impact sooner rather than later, implying that consumers will respond accordingly. ".
Hotel Chocolat, an online and High Street chocolate retailer, warned on Friday that it expected to lose money this year and have lower profits than anticipated in 2024.
The company attributed the change to "ongoing deterioration in consumer sentiment and persistent inflationary pressures."
