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British retail gross sales tumbled 2.7 per cent in Could, a a lot steeper drop than anticipated and the primary this 12 months, as shoppers reduce on purchases of meals and family items.
Friday’s determine from the Workplace for Nationwide Statistics was beneath the 0.5 per cent decline forecast by economists polled by Reuters.
The autumn, the biggest for any month since December 2023, adopted an increase in April, which retailers stated was all the way down to the unusually sunny climate.
The quantity of meals retailer gross sales fell again in Could, reversing a bounce in April. General retail gross sales volumes had been down 1.3 per cent in Could in contrast with the identical month final 12 months.
Paul Dales, economist on the consultancy Capital Economics, stated: “The sharp drop again in retail gross sales volumes in Could provides to different proof that the burst of financial development in Q1 is over.”
Retail gross sales figures are the primary official financial information for Could, offering a sign of shopper demand.
The decline got here as separate figures printed by the ONS on Friday confirmed the UK authorities borrowed greater than anticipated in Could.
Borrowing was £17.7bn final month, exceeding the £17.1bn forecast by the Workplace for Price range Accountability, the UK’s official fiscal watchdog, and up £700mn from the identical month final 12 months.
Borrowing — the distinction between complete public sector spending and earnings — for the primary two months of the brand new tax 12 months was £37.7bn, beneath the £40.7bn forecast by the OBR.
Chancellor Rachel Reeves is underneath strain to fulfill her fiscal rule to steadiness day-to-day spending with revenues by 2029-30 whereas enhancing public companies and spurring development.
