Retail Sales Climb

Retail sales jump Retail sales rose by more than expected last month, jumping 2.3% from the previous month, according to the Office for National Statistics. April's rebound contrasted with March, when sales saw the biggest drop in seven years. The stronger-than-expected rise in sales pushed the value of the pound above $1.30 to its highest level since September last year, increasing the hopes that the economy is bouncing back from its slow early start to the year.

The figures indicate that shoppers were not cutting down despite higher inflation. However, economists expect that higher prices - resulted by the rise in iflation, which pushed up the price of imported goods - will affect growth. 'With inflation jumping to three-year highs we remain cautious as to whether consumers can keep up this impressive pace of spending,' said Richard Lim at Retail Economics.

Keith Richardson, managing director retail sector at Lloyds Bank Commercial, commented that the figures were 'welcome news, but it's too early to think that the tide is turning after a dismal first quarter.' Chris Williamson, chief business economist at IHS Markit, also urged caution, noting that the underlying three-month trend showed sales were up by just 0.3%. 'With the exception of the first three months of this year, that's the weakest trend rate since the third quarter of 2014,' he said.