People walk in the rain over London Bridge in central London on March 12, 2024.
Lucy North – Pa Pictures | Photo ba | Getty Images
LONDON – UK retail sales volume fell by 2.3% in April, as wet weather discouraged shoppers, the Office for National Statistics said on Friday.
Economists polled by Reuters expected a smaller decline of 0.4%.
The ONS said: “Sales volumes fell in most sectors, with clothing retailers, sporting equipment, toys and games stores and furniture stores performing poorly, as bad weather conditions reduced footfall.” The March figure was revised from flat to a decline of 0.2%.
Sales rose 0.7% in the three months through April compared to the previous three months after a weak December and holiday season, but fell 0.8% year-on-year.
Chris Hammer, director of insight at the British Retail Consortium, pointed to bright spots in the data on cosmetics and computer sales.
“With summer approaching, and inflation rapidly approaching the Bank of England’s 2% target, retailers are hopeful that consumer confidence will improve and spending will pick up again,” Hammer said in a note.
Consumer confidence improved in May in both personal finances and expectations about the broader economy, according to a survey published by GfK on Friday.
Figures published on Wednesday showed that the UK's headline inflation rate fell to 2.3% in April from 3.2%. However, firming in core and services inflation has led markets to back off bets on the Bank of England's first interest rate cut in the June-August or September period.
Phil Monkhouse, UK director at financial services firm Ebori, said the snap general election announced this week on July 4 could add “new uncertainty” to the minds of consumers already dealing with higher interest rates.
“Preparing for warmer weather, ensuring easy access to finance and putting hedging arrangements in place will be essential for retailers wanting to weather any future sales fluctuations,” Monkhouse said.
