UK Retail Sales Surge 1.2% in May, Offsetting Labor Market Weakness

UK retail sales volumes jumped 1.2% in May, beating expectations and signaling resilient consumer demand despite higher interest rates. This follows softer labor market data showing stalled jobs growth and rising claimant counts earlier in the week. The positive retail figures may ease immediate pressure on the Bank of England to cut rates, supporting sterling and UK equities in the near term.