Retail sales in the United Kingdom fell for the first time in 13 months in April, suggesting a cost-of-living squeeze and shifting spending patterns, according to numbers released by the Confederation of British Industry on Wednesday.
The CBI’s main retail sales balance plummeted to -35 in April from +9 in March, considerably below the Reuters polled average of -3 anticipated. Sixty-three percent of stores reported lower sales volumes, while only 28 percent recorded an increase.
The report compares sales in April 2021, when many non-essential shops experienced a rise in sales as they reopened following COVID restrictions, while pubs and restaurants remained closed.
Even when seasonal impacts are taken into account, retail demand was sluggish this month, with sales for the time of year falling to -24 from -23 in March.
“Rapid inflation implies the cost-of-living challenge isn’t going away anytime soon,” said Martin Sartorius, a CBI economist.
‘Retail sales in April were below seasonal averages as consumer spending shifted back to services and rising prices hurt households’ spending capacity,’ he said.
Consumer price inflation hit a 30-year high of 7.0 percent in March, and is expected to soar much more this month as regulated residential energy bills increase by 50 percent.
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