With poor weather and uncertainty ahead of the election hitting spending, retail sales in Britain contracted more than expected in June.
The Office for National Statistics said retail sales fell by 1.2 per cent in June, a substantial reversal from a 2.9 increase in the previous month. Analysts had expected sales to slip by 0.4 per cent in the month.
Although rainfall in June was broadly in line with the UK long-term average, the month was much cooler than usual. The fall in sales was caused by weak spending on clothing, indicating that the weather deterred consumers from refreshing their wardrobes for the summer months.
Sales volumes in food stores fell by 1.1 per cent, mainly because of supermarkets, with retailers suggesting that poor weather and economic conditions deterred spending as households continued to grapple with high living costs. Although inflation has fallen back to the 2 per cent target set by the government, prices continue to remain significantly higher than they were three years ago.
Grant Fitzner, chief economist at the ONS, said, “Retail sales fell back from May’s recent high point with falls across all main shop types, with the exception of petrol stations. Department stores, clothing shops and furniture stores were the biggest contributions to the fall.
