Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Retail sales rise 1.2% as households eat at home more

by March 24, 2023
March 24, 2023
Retail sales rise 1.2% as households eat at home more

Retail sales volumes beat expectations to rise by their biggest margin in months to return to pre-pandemic levels in February.

Sales rose by 1.2 per cent in February, the largest monthly growth since October, after a revised 0.9 per cent rise in January, according to new figures published by the Office for National Statistics.

Strong sales in discount department stores pushed up non-food sales by 2.4 per cent and food sales rose 0.9 per cent as cost of living pressures prompted shoppers to cut down on eating at restaurants and instead buy more food to eat at home.

Sales volumes, however, fell in the three months to February compared with the previous three-month period and remain 3.5 per cent lower than in February last year.

City economists had predicted a 0.2 per cent rise in sales in February, which would have represented a decline of 4.7 per cent compared with the same period in 2022.

The volume of sales has followed a general trend of decline since summer 2021 but the value of sales has risen as inflation remains close to its highest level in decades.

Inflation is thought to have peaked at 11.1 per cent last October,its highest level in 41 years. The headline rate fell for three consecutive months to reach 10.1 per cent at the start of the year before a surprise increase to 10.4 per cent in February. It is expected to have more than halved by the end of the year.

Retail sales are seen as an early indicator of economic activity before gross domestic product (GDP) figures for January, which will be published next month.

Strong growth at the start of the year has reversed the 1.3 per cent monthly decline in retail sales recorded in December

Fuel sales fell by 1.1 per cent after a 1.1 per cent rise in January, when train strikes boosted car travel.

Gabriella Dickens, senior UK economist at the Pantheon Macroeconomics consultancy, said: “The outlook for retail sales has improved since the budget, when the government scrapped planned increases in both the energy price guarantee and fuel duty. These U-turns have averted a 1 per cent hit to households’ disposable incomes in [the second quarter]. Many households also will see some relief in April when benefits, including the state pension, rise by 10.1 per cent and the National Living Wage increases by 9.7 per cent.

“Other fiscal actions in April, however, will impede growth in disposable incomes; the basic and higher rate thresholds for income tax will be frozen; the threshold for the additional rate of income tax will be reduced to £125,000, from £150,000, and the £67-a-month energy bill support scheme grant will be withdrawn.”

Ashley Webb, UK economist at Capital Economics, said that any rise in retail spending could be compensated by a fall in non-retail spending. “At face value, these data further add to the view that the recent resilience in activity is still holding up, but when households’ finances are under pressure it is possible that any improvement in retail sales will just be met by a softening in non-retail spending (such as restaurants),” she said. “And although the worst of the falls in real household incomes are in the past, the full drag on activity from higher interest rates has yet to be felt.”

Read more:
Retail sales rise 1.2% as households eat at home more

0
FacebookTwitterGoogle +Pinterest
previous post
In New Hampshire, abortion activists score win as proposed restrictions fail in state House
next post
UK ‘less prepared for a pandemic now than before Covid’

You may also like

6m disabled people in UK to get £150...

August 23, 2022

Poundland sold for just £1 as up to...

June 12, 2025

An In-Depth Guide to Choosing a React Native...

May 23, 2024

From Business Deal to Digital Inferno: the Attack...

May 7, 2025

Leave a Lasting Impression on all Your Clients...

December 15, 2023

Financial Planning for Small Businesses: Avoiding Common Mistakes

October 28, 2024

British companies urged to trial four-day weeks in...

March 11, 2024

UK Business Climate Hub launches to help 5.5.m...

August 14, 2023

Metro Bank takeover approach adds to fears of...

June 14, 2025

UK Christmas shoppers urged to return to high...

December 13, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The five liberal courts that tied Trump’s hands before SCOTUS clipped their power

      June 29, 2025
    • Thom Tillis announces retirement from Senate after clash with Trump

      June 29, 2025
    • Revealed: The extensive perks UN officials receive amid budget crisis

      June 29, 2025
    • Trump administration takes on new battle shutting down initial Iran strike assessments

      June 29, 2025
    • Trump administration takes on new battle shutting down initial Iran strike assessments

      June 29, 2025
    • Schumer forces reading of Trump’s entire ‘big, beautiful bill’ as Senate braces for all-nighter

      June 29, 2025

    Categories

    • Business (8,334)
    • Investing (2,081)
    • Politics (15,860)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved