UK Retail Sales Fall Most In 7 Years
April 21 2017 - 03:20AM
RTTF2
UK retail sales logged their biggest quarterly decline in seven
years as high inflation curbed consumer spending at the start of
the year.
The retail sales volume decreased 1.4 percent sequentially in
the first quarter, the most since early 2010, data from the Office
for National Statistics revealed Friday. Sales had increased 0.8
percent in the fourth quarter of 2016.
In March alone, retail sales including automotive fuel decreased
1.8 percent, reversing a 1.7 percent rise in February. Sales were
forecast to fall moderately by 0.5 percent.
March's drop in retail sales suggests that the consumer spending
slowdown is gathering pace and adds to other evidence indicating
that the economic recovery has slowed since the end of last year,
Ruth Gregory, an economist at Capital Economics, said.
With credit conditions remaining supportive, and consumers'
confidence in the outlook for their own finances still quite
strong, the economist still expects overall household spending to
slow this year, rather than collapse outright.
The decline in March sales seems to be a consequence of price
increases across a whole range of sectors, ONS statistician Kate
Davies said.
Data showed that retail prices increased 3.3 percent
year-on-year in March, the biggest in five years, as the largest
contribution to growth came from petrol stations.
Clothing and footwear sales slid 0.9 percent and food sales
dropped 0.5 percent. At the same time, auto fuel sales plunged 4.6
percent.
Excluding auto fuel, retail sales volume declined 1.5 percent,
in contrast to a 1.6 percent rise a month ago and bigger than the
expected 0.5 percent drop.
On a yearly basis, growth in retail sales volume eased
more-than-expected to 1.7 percent from 3.7 percent. Economists had
forecast a 3.3 percent increase.
Excluding auto fuel, retail sales grew 2.6 percent, slower than
February's 4.1 percent increase and the expected 3.8 percent.
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