UK DATA: Apr Retail Sales +1.1% m/m; +2.8% y/y; median 0.8% m/m;2.4% y/y
–Apr Retail Sales ex fuel +1.2% m/m; +2.7% y/y; median 0.6% m/m;2.1% yy
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Retail sales volumes rose sharply in April by 1.1% m/m, the largest
increase since Jan. Food sales rose sharply by 2.2% m/m, with NS citing
the warm weather and extra bank holiday giving a boost to sales. They
also suggested clothing and footwear sales had benefited from the
unseasonably warm weather which were up 3.2% m/m. There was also a sharp
1.5% rise in household goods store sales. Department store sales and
other stores fell 0.3% and 2.6% respectively. Volumes rose in April and
so did prices, with the ex auto fuel deflator hitting the highest
level since June 1996. These latest figures will quell some rather
overdone fears of a retail meltdown, but the sector faces a difficult
year as household spending looks set to remain very subdued.