British retail sales increases by 0.2 pct in May

Britain's retail sales volume increased by 4.6 percent in May 2015 compared with that of a year earlier, recording the 26th consecutive year-on-year growth, the longest period of sustained growth since May 2008, according to official data.

On the month, the quantity bought in the retail industry increased by 0.2 percent compared with April 2015. Food stores, other non-food stores, household goods stores and petrol stations all saw growth in May, said the Office for National Statistics (ONS) on Thursday.

Average store prices fell by 2.7 percent year-on-year in May 2015, dragging by the 10.2 percent decrease of petrol station and recording the 11th consecutive month of price drop, data showed.

The value of internet sales decreased by 2.1 percent compared with April 2015, and by 7.4 percent compared with May 2014, data also showed.

The value of sales made online accounted for 12.0 percent of all retail sales.

Martin Beck, senior economic advisor to the EY ITEM Club, commented in a note:" Overall the picture for retailers continues to look bright."

"Ever more convincing evidence of a recovery in pay rises, with the latest labor market numbers showing real pay growth finally back to the pre-crisis norm, very low inflation, cheap credit and elevated levels of consumer confidence represent a cocktail of positive factors," said Beck.

"With plentiful tailwinds supporting the consumer, the retail sector's prospects remain at their brightest since 2007," he added. Endit