LONDON, June 19 (Reuters) - British retail sales volumes rose by 1.2% in monthly terms in May, official figures showed on Friday.

A Reuters poll of economists had mostly expected a monthly rise of 0.5% in sales volumes.

Compared with a year earlier, volumes were 3.2% higher, against economists' expectations of a 1.9% rise.

Earlier on Friday, a survey showed consumer confidence held steady in June but younger people turned the least optimistic in two years about the economy and their personal financial situation, and households were the least willing to make big item purchases since January 2025.

Major British retailers have highlighted that the Middle East conflict is still creating uncertainty for consumers. While they noted some grounds for optimism following U.S. President Donald Trump's interim deal with Iran they are continuing to monitor closely the impact on their costs.

Supermarket groups Tesco TSCO.L and Morrisons both reported a slowdown in sales growth since the start of the conflict. Industry leader Tesco said a good spell of weather would give more of a boost to sales than England and Scotland performing well in the men's soccer World Cup.