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UK retail sales rebound in warm May as consumer confidence improves
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UK retail sales rebound in warm May as consumer confidence improves
Rolling coverage of the latest economic and financial news, including the latest retail sales and public finances data
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Small business  
UK firms call for new repayment terms for Covid loans
UK firms call for new repayment terms for Covid loans
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Plusnet mobile customers told to switch within weeks or lose number
Royal Mail  
Owner faces £900m class action claim for ‘abusing dominant position’
Horizon scandal  
Post Office investigator deleted mention of Horizon failure, inquiry hears
Food security  
UK parties ignoring food shortage risks, say farming and retail bodies
Boeing  
Families of crash victims demand prosecution for ‘deadliest corporate crime in US history’
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YouGov shares almost halve in value after sales and profits warning
Packaging  
DS Smith’s £5.8bn takeover by US rival going ahead despite competition
Energy industry  
Supreme court ruling throws doubt on new UK fossil fuel projects
NatWest  
Lender to take on most of Sainsbury’s Bank
The economy  
How 14 years of Tory rule have changed Britain – in charts
Today's agenda
The latest retail sales figures show that consumer spending picked up last month, while new borrowing statistics are casting a light on the public finances.

May’s retail sales stats show that sales volumes rebounded in May, after a slump in April when bad weather drove shoppers from the high street. That’s rather stronger than the 1.5% rise forecast by City economists.

Sales volumes jumped by 2.9% in May 2024, following a fall of 1.8% in April, the Office for National Statistics reports.

The ONS says: "Sales volumes rose across most sectors, with clothing retailers and furniture stores rebounding following poor weather in April."

Last month was the warmest May on record, in a series going back to 1884, according to the Met Office.

More broadly, sales volumes rose by 1.0% in the three months to May 2024 when compared with the previous three months, the ONS adds.

Retail sales volumes rose across all main sectors, the ONS says.

The biggest growth was seen among “non-store retailers”, such as online shops, where volumes jumped by 5.9% on the month.At department stores, clothing outlets, household goods sellers, and other non-food stores, volumes rose by 3.5% in May.

These increases suggest people feel more confident about economic conditions – as shown by the latest poll of consumer confidence from GfK. But while that may bolster Rishi Sunak’s claim that the economy is turning the corner, this isn’t providing the PM with a poll boost.

The public finances, meanwhile, show that the UK borrowed £15bn in May to cover the difference between government spending and income. That’s a little lower than forecast, but £800m more than in May 2023.

It’s the third highest May borrowing since monthly records began in 1993.

The UK’s net debt as a percentage of GDP remains at levels last seen in the early 1960s.

The UK borrowed another £15bn in May. Although that’s £800m more than a year ago, it’s £600m lower than forecast by the Office for Budget Responsibility.

The ONS said public sector net debt excluding public sector banks was provisionally estimated at 99.8% of gross domestic product (GDP) at the end of May.

That’s 3.7 percentage points higher than a year ago.

The UK public finances report shows that central government’s receipts rose by £1bn in May, year on year, to £76.8bn.

That includes a £2bn rise in tax receipts, lifted by increased income tax, corporation tax and value added tax (VAT) receipts.

But compulsory social contributions fell by £900m, due to the cuts to the main rates of national insurance.

The agenda
• 7am BST: UK public finances for May
• 7am BST: UK retail sales for May
• 9am BST: Eurozone flash PMI survey for June
• 9.30am BST: Eurozone flash PMI survey for June
• 2.45pm BST: US flash PMI survey for June
• 3pm BST: US existing home sales for May

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
The future is delayed at Ocado (again)
The future is delayed at Ocado (again)
 

Marina Hyde

Guardian columnist

Person Image

All aboard the election rollercoaster

Covering the past however many years in British politics has been a rollercoaster. If I were Liberal Democrat leader Ed Davey I would obviously illustrate that point by simply being pictured on a rollercoaster. But look – I want you to know I am writing this while on a rollercoaster. Please excuse any typos.

I wouldn’t go so far as to say that writing about the many, many recent prime ministers has been therapy, but it has felt good to “talk things through” with readers who have also been strapped to the rollercoaster with their eyes held open.

Of course, other metaphors are available – in fact, UK governance has arguably worked very hard in recent years to become its own metaphor. So here we all are, shoulder-deep in the waters of the general election, as though it were one of our great rivers / brown-flag beaches.

And if, like me, you consider yourself adrift on the currents of our times, then why not consider grabbing on to a life-raft in the form of the Guardian’s political coverage? Our life-rafts are very reasonably priced, starting at just £4 a month, and allow us to keep producing more life-rafts/multi-award-winning political coverage – without having a paywall. If you can afford it, please consider it. We quite literally couldn’t do it without you.

 
Opinion
The economy  
How 14 years of Tory rule have changed Britain – in charts
How 14 years of Tory rule have changed Britain – in charts
Explainer  
Which everyday items have fallen in price most?
Media
Washington Post  
Publisher alleged to have advised Boris Johnson to ‘clean up’ phone during Partygate Covid scandal
Publisher alleged to have advised Boris Johnson to ‘clean up’ phone during Partygate Covid scandal
Newspapers  
Telegraph group falls to loss of £240m as a result of loans to Barclay family ‘unlikely to be repaid’
Spotlight
How a disastrous Tory policy blew up the property market
Housing  
How a disastrous Tory policy blew up the property market
George Osborne’s help to buy cost billions, pushed up prices, did almost nothing for new buyers – but made house builders a lot of money
Popular on business
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Bank of England keeps interest rates at 5.25% in ‘finely balanced’ decision
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Pound falls as UK interest rates left on hold in ‘finely balanced’ decision – as it happened
Tell us: are you in a dispute with your employer over remote working in the UK?
The man who built Docklands: from poverty in Romania to Canary Wharf’s skyscrapers
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