May retail sales comment


This article is brought to you by Retail Technology Review: May retail sales comment.

By Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club.

Retail sales volumes in May came in slightly better than expected, with better weather helping online sales of both outdoor goods and summer clothing. 

Consumer spending remains robust in the face of inflationary pressures and results from retailers themselves back this up. Earlier this week Next upgraded its profit expectations on the back of much stronger than expected trading.

The big question is how much longer this can persist? 

Mortgage rates have increased significantly in recent weeks and inflation is at risk of becoming entrenched. This doesn't bode particularly well for consumer confidence in the back half of the year. At that point retailers may really start to feel the pinch. 

But for now, the UK consumer continues to defy the doom mongers.

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