People walk in the rain on London Bridge in central London on March 12, 2024.
Lucy North – Pa Images | Pa Images | Getty Images
LONDON — British retail sales fell 2.3% in April as wet weather led to fewer shoppers, the Office for National Statistics said Friday.
Economists polled by Reuters had expected a smaller decline of 0.4 percent.
“Clothing, sporting goods, games and toy stores and furniture stores saw fewer customers due to the bad weather, resulting in lower sales across most sectors,” the ONS said in a statement. It revised down its March figure from flat to down 0.2 percent.
Sales in the three months to April increased 0.7% compared to the previous three months but were down 0.8% year-over-year, following a weak December and holiday season.
Chris Hamer, insight director at the British Retail Consortium, said there were encouraging signs in sales data for cosmetics and computers.
“With summer approaching and inflation rapidly approaching the Bank of England’s 2 percent target, retailers are hoping that consumer confidence will improve and spending will pick up again,” Hamer said in the note.
Consumer confidence improved in May in both personal finances and the overall economic outlook, according to a survey released Friday by GfK.
UK headline inflation fell to 2.3% in April from 3.2%, according to data released on Wednesday, but firmer core and services inflation helped market expectations of a first rate cut from the Bank of England in August or September from June have slipped.
Phil Monkhouse, UK manager at financial services firm Ebury, said the surprise July 4 general election announced this week could add “new uncertainty” to the minds of consumers already facing rising interest rates.
“Preparing for warmer weather, ensuring access to financing and having hedging arrangements in place will be essential for retailers looking to weather future sales volatility,” Monkhouse said.
