Sales Surprise in May; But Down Compared....>

UK DATA: Sales Surprise in May; But Down Compared to Feb

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- UK MAY RETAIL SALES +12.0% M/M; -13.1% Y/Y, ABOVE BBG +6.5% M/M F/C

- UK MAY RETAIL SALES EX-FUEL +10.2% M/M; -xx% Y/Y

- UK APR TOTAL SALES REVISED UP -18.0% M/M

- UK MAY RETAIL SALES DEFLATOR 0.0% Y/Y; EX-FUEL +0.2% Y/Y

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Retail Sales rebounded to 12.0% in May, beating market forecasts, while y/y

sales continued to decline. May's uptick was led by non-food store sales, rising

by 23.7% with HH goods stores showing the largest m/m gain (+42.0%). However,

compared to Feb (pre-covid) sales are still down 13.1%. Fuel sales jumped 49.1%,

however compared to Feb without travel restrictions, sales are still around 42%

lower. Y/Y sales continued to decline sharply in May, however at slower pace

than in Apr with food sales and non-store retailing showing the only annual

gains. The ONS further noted that internet sales saw another strong month with

many retails increasing their online presence.