Retail sales jumped by 2.3 per cent in April, well ahead of expectations, suggesting the UK consumer might be more resilient than feared.
City of London analysts had expected growth of 1 per cent, following March's 1.8 per cent decline.
The pound jumped 0.5 per cent in the wake of the strong release from the Office for National Statistics, pushing through the $1.3 mark to $1.3036.
Retail sales volumes were up 4 per cent on the same month a year earlier, accelerating from the 1.7 per cent growth rate registered the previous month.
Retail sales account for around 30 per cent of household consumption, which has powered growth in the wake of the Brexit vote last year.
Overall GDP growth slowed to 0.3 per cent in the first quarter of 2017, mainly thanks to a sharp slowdown of household spending.
In the first quarter retail sales had declined at their fastest quarterly rate in seven years.
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