UK retail sales rose by 0.2 per cent in June, over the previous month, helped by department store discounts and promotions.
According to the Office for National Statistics (ONS) the figure meant sales were up 2.2 per cent compared with June 2012.
June’s modest rise compares with May’s strong growth of 2.1 per cent, but will add to hopes of a UK economic recovery.
The current warm weather is also boosting hopes that retail sales growth will continue. Analysts said the good weather would boost consumer confidence.
Ian Geddes, UK head of retail at Deloitte said: “The weather will have lifted consumers’ spirits and willingness to spend, as will a recent series of positive economic indicators including increased housing activity, stable inflation and a small rise in lending.”
Sales in June at non-specialist stores, together with department stores, grew at their fastest rate since March 2012 with a rise of 3 per cent on the month, boosted by promotions and clearance offers.
The ONS figures translate to growth in the sector of 0.9 per cent over the second quarter, an increase that will push up overall gross domestic product by 0.1 per cent.
The retail sector accounts for about 5.7 per cent of British the economy.
Food store sales fell by 0.1 per cent in June, while non-food stores and household goods stores sales grew 0.6 per cent, the ONS said.
The month of June saw average weekly spending across all retail sectors reach £6.9bn, up from £6.8bn in May.
Victoria Clarke, economist at Investec, said: “It looks like retail sales held up relatively well through the course of the second quarter.
“This will be a decent contribution to GDP, certainly suggesting that the spending momentum of consumers is continuing despite inflation continuing to squeeze household earnings.”
Chief economist at Markit, Chris Williamson said: “A further increase in retail sales in June rounds off a good second quarter for retailers, with spending growing at almost twice the rate seen in the first three months of the year.
“The data adds to evidence that the pace of economic recovery has clearly picked up since earlier in the year, and there are encouraging signs that momentum will be sustained as we move into the second half of 2013.”
A recent string of positive economic news has raised hopes that the economy is set to improve.
Last week, official jobs statistics showed another fall in unemployment, and several recent surveys have reported a shift in business confidence.
