“However, we expect retail sales volumes to continue to gradually improve from here for three key reasons. First, households’ real disposable incomes are set to rise rapidly from April as inflation falls back to 2%, tax cuts kick in and the large minimum wage increase comes in. This will boost overall consumer spending and retail sales volumes. What’s more, consumer confidence should continue to rise, ensuring that households spend most of their new income. Consumer confidence rose to -17 in May, its highest level since 2021. Admittedly, the campaign for the general election may knock consumer confidence in June but we don’t expect this to be significant.
Content Source: www.standard.co.uk