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New data shows that UK retail spending has slowed to its weakest pace this year in May, bringing questions about the strong consumer resilience.
Retail sales were well below the average January-May 2.5% average January-May 2.5%, according to figures issued by the UK Retail Consortium on Tuesday.
The figure lags behind inflation rates of 3.4% in April, suggesting a decline in actual spending.
Helen Dickinson, CEO of the UK Retail Consortium, said consumers were “putting a brake on spending” and that non-grocer items such as fashion, full prices and high-priced purchases were suppressed by “unconsumer reliability.”
However, while food sales were stable and helped by several major soccer tournaments, the game was also working well for the popular new release, she added.
Official data showed that inflation-adjusted sales increased 1.8% over the three months to April, compared to the fastest rate since July 2021, the last three months.
In the first three months of the year, the UK economy grew more than expected at 0.7%, but economists, including the Bank of England, expect the pace to slow down in the second quarter.
Linda Ellett, UK consumer, retail and leisure at KPMG, is helping to compile BRC data, but Sunny Weather said it means that some shoppers made seasonal purchases early, helping to slow sales growth in May. She added that her appetite has also diminished after families hit an essential bill rise in April.
The BRC filmed the chimes alongside Barclays people who reported on Tuesday that consumer credit and debit card spending rose by only 1% per year, falling below the latest inflation pace.
Card spending on clothing rose just 0.9% in May, while trading in the sector increased by 3.8%. Barclays said it showed shoppers switching to cheaper items and brands. Expenses on electronics and home improvements have been signed.
Barclays retailer Karen Johnson said shoppers are “becoming more value-conscious and balance essential spending with little luxury like movie travel, garden projects and short breaks. And while Sunshine in the first half of the month helped with sales, “long-term uncertainty continues to shape how and where people use it,” she added.
