The Office of National Statistics reports that sales of clothing and home products continue to decline, with customer feedback indicating that they are cutting back owing to rising prices and rising costs of living.
According to official data, retail sales in the United Kingdom increased in July, but the longer-term declining trend in consumer spending shows little indication of abating.
According to the Office of National Statistics, sales grew by 0.3% in July, which was significantly more than the 0.2% dip experts predicted.
However, sales decreased by 1.2% in the three months leading up to July compared to the prior period, continuing the downward trend since last summer.
Sales are 3.4% lower than they were in July of last year, more evidence that consumers are tightening their belts in response to the rising cost of living.
The ONS revealed that an adjustment of June’s retail sales numbers resulted in a 0.2% decline rather than 0.1%, indicating that shopping activity was slower than originally believed.
The head of economic statistics at the Office for National Statistics (ONS), Darren Morgan, stated, “Retail sales ticked up very slightly in July, but they are continuing the declining trend that began last summer.”
“Online sales increased this month, as shops reported that a variety of deals and promotions boosted sales.
“However, fuel sales decreased, with some evidence indicating that the extremely hot weather caused fewer people to travel.
Clothing and household goods sales decreased once more, with feedback indicating that consumers continue to cut back owing to rising costs and concerns about affordability and cost of living.
The data also revealed that food shop sales increased by only 0.1% in July, a decline from the revised 2.7% increase in June, when the Queen’s Platinum Jubilee weekend boosted grocery purchasing.
Consumer confidence is at an all-time low, according to recent data, because of “acute anxieties” about the rising cost of living and the grim economic outlook.
The Bank of England has issued a warning that rising inflation will likely push the United Kingdom into recession later this year.
The Consumer Price Index (CPI) jumped to 10.1% in the 12 months leading up to July, up from 9.4% in June and remaining at its highest level since February 1982, due to a rise in food costs on top of prior steep increases in household energy expenditures.
