UK consumers hit the shops after early 2018 freeze - surveys
Published Jun 05, 2018 09:02
UK consumers hit the shops after early 2018 freeze - surveys
LONDON (Reuters) - British shoppers ramped up their spending in May after a snowbound start to the year, two surveys showed on Tuesday, the latest suggestion that the overall economy is recovering from its early 2018 slowdown.
With the Bank of England watching for signs that the weakness in the economy in the first quarter was only temporary before it raises interest rates again, the British Retail Consortium (BRC) said total retail sales values jumped by an annual 4.1 percent in May.
That was the biggest rise in more than four years excluding distortions caused by different timings of Easter.
Separately, Barclaycard, the credit and debit card division of Barclays (L:BARC), said its measure of consumer spending rose by 5.1 percent year-on-year, the biggest increase in 13 months.
Both surveys showed spending on non-essential items picking up, possibly reflecting an easing of the squeeze on many households who have been hit by rising inflation and weak wage growth for much of the period since the June 2016 Brexit vote.
Barclaycard said the 4.6 percent increase in non-essential spending growth was the strongest in 14 months with hot weather helping sales at garden stores, which were up 50 percent over the early May bank holiday weekend, and at other retailers.
Inflation has waned in recent months while wages grew bit more strongly, even if consumers remain wary.
"Despite this more positive set of sales results, the retail environment remains extremely challenging, with trend growth still very low by historical standards," Helen Dickinson, chief executive of the BRC, said.
Barclaycard said fewer consumers had confidence in their household finances in May and, despite inflation falling to a 13-month low in April, fewer than one in 10 consumers felt they had experienced a positive impact on their spending power.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.