Retail Sales Plummet in April Due to Poor Weather, According to Office for National Statistics
Retail sales in the UK took a sharp downturn last month, falling 2.3% according to newly released data from the Office for National Statistics (ONS). This decline was even worse than the 0.4% decrease predicted by economists polled by Reuters.
The ONS report revealed that the quantity of goods and services purchased by households significantly dropped in April. This is a concerning trend as household consumption is the largest expenditure across the UK economy. Retail sales figures can also impact overall economic growth, measured by gross domestic product (GDP). This is a key metric that Prime Minister Rishi Sunak has committed to growing as one of his top priorities.
Revised data also showed that March sales figures were not as stagnant as previously thought, with a 0.2% decrease rather than a flatlining. However, this is still a cause for concern as it marks a consecutive decline in retail sales.
The weather was a major contributing factor to the decline in retail sales, with a higher than average amount of rainfall and lower than average sunshine hours. This resulted in fewer people venturing out to shop, particularly in sectors such as clothing, sports equipment, games, toys, and furniture.
While online sales saw a slight increase, the volume of orders actually decreased. This can be attributed to the overall decrease in consumer confidence, as people were less inclined to make purchases in such poor weather conditions.
Despite the negative impact of the weather on retail sales, there is some positive news in terms of consumer confidence. Market research firm GfK’s consumer confidence index showed an improvement in how people feel about their personal finances and the UK economy. While the overall index score remains in negative territory at -17, it is a two-point improvement from the previous month.
Prime Minister Sunak will undoubtedly be keeping a close eye on future retail sales data, as it will have an impact on his goal of growing the UK economy. With the recent announcements of inflation and the upcoming election, the state of retail sales will continue to be closely monitored by economists and policymakers.
