British retail sales unexpectedly grew on the month in April, although the annual growth rate slipped to its weakest in two years, the Office for National Statistics said today.
The 0.5 per cent monthly gain was above consensus for no change but March's 0.1 per cent fall was revised down to a 0.3 per cent fall.
The annual gain slipped to 2.3 per cent from 2.4 per cent in the prior month and its lowest since April 2003, although that too was slightly above consensus for a 2.2 per cent rise.
Although the monthly gain was unexpected given the gloomy reports from retailers and other surveys, the figures are not likely to alter expectations that the Bank of England will leave interest rates on hold at 4.75 per cent for some time to come.
The ONS said the April gain was driven by rises in all categories except non-specialised stores, which include department stores. The biggest contributor to the rise came from the non-store sector, particular catalogue sales which had fallen sharply in the prior month.
On a three month on three month basis retail sales grew just 0.2 per cent, the same rate as in the prior period.