UK retail sales rose strongly in April despite major drag from clothing on account of cold weather

Office For National Statistics data earlier today showed that UK retail sales bounced back much more strongly than expected in April, despite cold weather. Retail sales volumes rose 1.3 percent on the month in April, the Office for National Statistics said, well above economists' average forecast of 0.5 percent growth.

Compared with a year earlier, sales volumes were up 4.3 percent, beating all forecasts in a Reuters poll. But on a quarterly basis, volumes were up just 0.3 percent, the weakest growth since September 2014.

March data was also significantly revised to show a 0.5 percent fall m/m, much smaller than a decline of 1.3 percent previously estimated, due to more late data than normal from some large stores.

"Clothing stores remain the main drag on growth in the retail sector, with sales hampered by unseasonal weather. However ... sales increased in April compared with March as lower prices boosted sales," ONS statistician Melanie Richard said.

The ONS said it had received no anecdotal evidence from retailers that demand was being affected by the referendum. However, data stands at odds with the fall in April consumer confidence to a sixteen month low and other recent data that suggests domestic uncertainty may be weighing on UK economic activity.