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

Future Retirement Success

Business

Retail sales stagnate as shoppers cut back on food

by March 22, 2024
March 22, 2024
Retail sales stagnate as shoppers cut back on food

British shoppers tightened their belts on food spending last month, leading to a slowdown in retail sales growth following a strong start to the year.

Official data on retail sales volumes remained flat in February, defying economists’ expectations of a 0.4% decline, after experiencing a robust 3.6% expansion in January.

The Office for National Statistics (ONS) reported that sales volumes plateaued as consumers reduced spending on food and fuel, particularly due to the surge in petrol prices during February. However, increased spending on online goods, clothing, and department stores partially offset these declines, resulting in an overall 0.3% dip in average sales over the past three months. Despite this, overall sales volumes remained 1.3% below pre-pandemic levels.

February’s stagnant performance followed January’s exceptional sales, marking the strongest month for the high street in nearly three years and contributing to a monthly economic growth of 0.2%. This performance likely lifted the UK economy out of a brief recession at the beginning of 2024.

Economists had anticipated a decline in retail sales last month, attributing it to adverse weather conditions, including the wettest month on record in parts of England, which deterred shoppers from physical stores. The ONS noted a 1% decrease in monthly sales volumes for household goods, with respondents citing economic conditions and poor weather as contributing factors to the decline.

Consumer spending has been buoyed by a steady decline in inflation, which dropped to 3.4% in February, its lowest level since September 2021. However, interest rates remain at their highest since 2008, with the Bank of England expected to implement its first monetary policy easing in the summer.

Following two years of declining real household disposable income, consumers are expected to benefit from slower price growth, announced cuts to national insurance, and an increase in the National Living Wage to £11.44 for workers aged over 21 starting next month.

Retail sales serve as a crucial indicator of consumer confidence and the overall economic condition, particularly in a services-dominated economy like the UK’s.

Heather Bovill, senior statistician at the ONS, commented, “Retail sales were flat in February. There was growth in clothing and department stores, offset by declines in fuel sales, possibly affected by rising prices, and a reduction in food sales. Many shops reported that in-store sales were impacted by wet weather, with online sales seeing a boost instead.”

Read more:
Retail sales stagnate as shoppers cut back on food

0
FacebookTwitterGoogle +Pinterest
previous post
Apple Faces Lawsuit by US Over Smartphone Market ‘Monopoly’
next post
£900,000 penalty for promoter of tax avoidance scheme

You may also like

EU announces €4bn aid deal to back battery...

January 9, 2024

Labour seeks to protect face-to-face banking by forcing...

November 17, 2022

Google launches new cybersecurity training to help UK...

June 7, 2023

Starmer pushes for Gulf trade deal to revive...

December 10, 2024

Essential Jewelry for Every Woman

April 24, 2024

Energy bill support for firms set to be...

January 9, 2023

Exploring Southeast Asia: A Guide to Tourist Attractions,...

October 21, 2023

Keeping UK energy bills down over winter cost...

June 9, 2023

UK Government Quietly Pauses Natwest Retail Bidding Process

April 1, 2024

Protecting Women at UK Business Events: The Rise...

April 3, 2024

    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

    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025

    Categories

    • Business (8,158)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • 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