British Retail Sales Plummet in May: Sharpest Decline in 2024
British retail sales volumes experienced their largest decline since December last month, dropping by 2.7% in May. This decline surpassed forecasts and was attributed to reduced demand following a spending surge in April. Retailers faced challenges amid a competitive market and changing consumer behavior.
A steep decline in British retail sales was recorded last month, marking the sharpest drop since December. Official data released by the Office for National Statistics showed a 2.7% decrease in retail sales volumes for May, significantly exceeding the expected 0.5% drop predicted by a Reuters poll.
The annual sales comparison also reflected a 1.3% decline, indicating the most substantial fall since April 2024 and contrasting with a predicted 1.7% growth. The trend, described as a particularly 'dismal month for food retailers', was exacerbated by declining alcohol and tobacco sales, reduced footfall in clothing outlets, and less demand for DIY items.
Despite this downturn, analysts like Capital Economics' Paul Dales, suggest consumer spending might surpass other economic sectors this year. However, unsettling news for the sterling came alongside increasing government budget deficits and fluctuating economic forecasts.
(With inputs from agencies.)
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