A survey has revealed that retail sales witnessed increased during the month of May mainly due to warm weather and the coming football World cup. But majority of the consumers are still not ready to make large purchases.

It was confirmed by the British Retail Consortium that the sales increased in value by 0.8% in the month of May. It was still a big improvement compared to a 2.3% decline recorded in the month of April.

The warm weather encouraged people to go out and buy more clothes. The discounts offered by the retailers increased sales of televisions due to the approaching football world cup.  

But various factors like prevailing uncertainty in the European market apart from uncertainty over public spending cuts and the tax increases by the new Government have discouraged the consumers from making big purchases.  

Experts also pointed that even though consumer confidence has improved compared to the last year, a lot of uncertainty is still present in the market. It is expected that the upcoming budget will lead to a clearer picture.

The recently elected Government has already announced public spending cuts amounting to 6 billion pounds in the current year. This is mainly to reduce the high amount of fiscal deficit which has almost reached 11% of GDP. 

It is widely expected that the Government will reveal more spending cuts apart from increasing tax rates.