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Retail figures disguise fears over fiscal cuts
Friday, 18, June 2010


UK retail sales volumes rose in May at six times the pace predicted by the City, boosted by demand for televisions ahead of the football World Cup.The Office for National Statistics (ONS) said that sales volumes rose by a seasonally-adjusted 0.6% in May. The City had forecast a 0.1% month-on-month increase.However, the ONS revised the previous month’s figures to show sales volumes unchanged between March and April, having estimated previously that they had risen by 0.3%.

Year-on-year growth in retail sales volumes accelerated from a downwardly-revised 1.3% in April to 2.2% in May – the fastest pace since November 2009.Sales in the household goods category jumped 1.7% month-on-month in May, the ONS revealed. Sales of electrical goods were particularly strong – signalling increased demand for flat-screen televisions ahead of the World Cup.A 1% month-on-month jump in food sales in May, the sharpest rise in this category since last June, also appeared likely to have been at least partly related to the tournament.
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