UK Retail sales rise 0.6% in May

- News will reassure Chancellor ahead of budget next week-

Date: June 17, 2010

UK Retail sales rose 0.6% since last month, according to data released by the Office for National Statistics. Sales grew six times faster than forecast as consumers raced to buy electrical goods ahead of the World Cup.

This news has helped the pound recover from a disappointing overnight session, rising 0.25% against the dollar to $1.4735 and 0.14% against the euro to 1.1951.

Mark Bolsom, Head of the UK Trading Desk at Travelex Global Business Payments said, “This is a welcome piece of good news and shows the consumers underlying resilience. Although the World Cup will have played a large part in boosting sales it is consistent with recent upbeat data and it will reassure the Chancellor that the UK economy is strengthening.

“There is a downside however. As positive data continues emerge, the Chancellor will feel increasingly confident about taking a tougher stance in the budget next week. Continued economic fragility is the main reason the Chancellor hasn’t enacted stronger austerity measures already. If there were any doubt before, I think we can now safely assume that Osborne will take a tough stance in the budget next week.”

- Ends -

Media enquiries
Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

Notes to editors
View Travelex releases online at http://www.travelexbusiness.com/uk/about/media-releases

About Travelex:
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.