Retail sales down 2.1 percent for May

Like-for-like retail sales around the UK fell 2.1 percent during May compared with the same month of last year, after they increased by 5.2 percent in April on the same comparative basis.

The latest data from the British Retail Consortium (BRC) and KPMG shows the extent of the squeeze on consumer spending and the issues facing UK retailers.

Concerns about jobs and incomes kept consumers away from the shops in May much more than during April, when good weather and a string of bank holidays helped give retailers a welcome boost.

“This is a more realistic reflection of how tough conditions on the high street really are,” said Stephen Robertson, director general of the BRC. “Customers' fundamental reluctance to spend is now clear to see.”

High inflation and low wage growth, as well as widespread worries over the potential impact of public sector spending cuts means British consumers are reluctant to spend their money on the high street, Robertson said.

Markit and the Chartered Institute of Purchasing and Supply said this week that growth in the UK construction sector strengthened during May but that the manufacturing industry recorded its slowest growth in activity for 20 months in the same period.