UK retail sales in April grow more than expected, pound continues to rise.

In April, retail sales in the UK surged, continuing the unexpectedly strong momentum seen at the beginning of the year, further indicating consumer resilience in the face of rising bills and global trade tensions. According to data released by the UK National Statistics Office on Friday, retail sales in April increased by 1.2% month-on-month, marking the fourth consecutive month of growth, surpassing economists' expectations of 0.3% growth. April was the sunniest month on record in the UK, with pleasant weather nationwide. Senior statistician Hannah Finselbach of the UK National Statistics Office said, "The clear skies and warm temperatures helped drive the growth in retail sales in April, with strong performance in most industries." Categories such as food and alcohol saw an increase in sales. These data suggest that UK consumers are weathering the economic headwinds both domestically and internationally. The report covers a period following Trump's announcement of retaliatory tariffs, during which UK households also faced significant increases in water bills, train tickets, and local government taxes, dubbed by the British media as a "grim April." Another report shows that consumer confidence in the UK slightly rebounded in May after being hit by Trump's tariffs in April. This month, consumers are more optimistic about their financial and economic situation, and are also more willing to purchase big-ticket items such as cars or furniture. Alex Kerr of KTG Macro said, "For the first time since 2015, excluding the pandemic period, retail sales have grown continuously for four months." However, he warned, "This growth is not sustainable. Although consumer confidence has slightly rebounded in May, we expect retail sales growth to slow down in the coming months." Following the release of better-than-expected data, the pound rose against the US dollar, up 0.3% to 1.3461 on the day. The pound's exchange rate is currently close to its highest level since 2022.