British retail industry will suffer in 2024unchartedpccrashThe largest decline this year was mainly hit by the double blow of continuous rainy weather and uncertain economic conditions, which caused consumers to delay spending. According to the latest data released by the British Office for National Statistics, retail sales fell by 2.5 percent month-on-month in April after the adjustmentunchartedpccrash.3%, while the decline in March was revised to 0unchartedpccrash.2%。
The decline not only exceeded economists 'expectations of 0.5%, but also set the worst performance since the UK economy entered recession in December last year. At the same time, this unfavorable situation has brought considerable challenges to the upcoming Conservative government's re-election campaign.
British Prime Minister Rich Sunak's government had been hoping for an improvement in the economy in order to narrow the 20-point gap with the main opposition Labor Party in the July 4 election. However, official data from retailers reveal a continued tightening in the cost of living, with consumers having to pay more for fewer goods after experiencing the worst inflation in four decades.
The Office for National Statistics pointed out that due to severe weather, store traffic decreased, resulting in poor sales of clothing, sports equipment, games and furniture. Adjusted retail sales fell 2.7% year-on-year in April, following a 0.4% increase in the previous month.
It is understood that the British Retailers Association warned earlier this month that due to gloomy weather, consumers 'interest in buying summer clothing or garden furniture has dropped sharply, making sales in April extremely dismal.
The Met Office report also confirmed that the weather remained "unstable, humid and cloudy" this month, especially in Scotland, Wales and western England, where heavy rainfall hit the country. At the beginning of the month, Storm Catherine also brought strong winds.
Still, consumer confidence improved for the second consecutive month as household budgets increased amid optimistic economic prospects and inflation fell to its lowest level in nearly three years. The UK's Gfk consumer confidence index rose to minus 17 in May. This figure was not only higher than economists 'expectations of minus 18, but also much higher than a year ago during the severe cost of living crisis.
"With overall inflation falling and the prospect of interest rate cuts, consumers clearly feel things are improving, and this trend is undoubtedly positive," said Joe Staten, director of customer strategy at market research firm GfK Ltd.
He further pointed out that while indicators of personal financial prospects, savings and the overall economic outlook all rose, the index that tracks households 'willingness to buy large items fell to minus 26, indicating that "the cost of living crisis remains a major factor.unchartedpccrashThe reality we all face every day."