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Shop sales slump in April hit by heavy rain

May 24, 2024
in Business
Reading Time: 1 min read
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Shop sales slump in April hit by heavy rain
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With people sticking close to home in the wet weather, fuel sales dropped 4.9% in April, the biggest monthly fall since October 2021.

Meanwhile, a separate survey by research company GfK suggested consumer confidence is at its highest level for two years.

However, GfK’s index, which measures how people view their personal finances and the broader economic situation, remains in negative territory.

“Though consumer confidence continues to rise, many remain apprehensive and are not yet loosening their purse strings, especially on non-essential items and goods such as clothing and footwear,” said Oliver Vernon-Harcourt, head of retail at Deloitte.

“Consumers are focused on value, with the likes of own-label food remaining resilient.

“Overall, this is a clear sign that, despite inflation easing, retailers’ road to recovery will require them to continue to invest into product ranges that target consumers of all budgets.”

Economists say that the outlook for the High Street is brighter over the summer, as wage growth outstrips price rises many households will start to feel more flush.

But the latest fall in retail sales doesn’t bode well for the fate of overall economic activity, or GDP, in April – which is not the kind of news the government can use.

Credit: Source link

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