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Spending heats up as the temperature rises

Warm weather and the royal wedding encouraged shoppers to go on a spending spree last month, with retail sales far outstripping expectations.

The surprise figures add to signs that the economy is starting to recover from the sharp slowdown in economic growth in the first three months of the year that led the Bank of England to hold off from raising interest rates.

Sales volumes in May rose by 1.3% compared with a month earlier, after a bounce in April of 1.8%, the Office for National Statistics said.

The figures are impressive as sales have not risen by more than 1% for two consecutive months since late 2014.

The ONS said feedback from retailers suggested that a hot, dry spell and royal wedding celebrations boosted spending in supermarkets and household goods stores during the month.

“As we began to experience warmer weather in April, temperatures rose to above average in May, which contrasts with the lower than average temperatures experienced in February and March. This shift to warmer weather may have encouraged consumers to spend later in the year”, the ONS said.

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