The Office for National Statistics has reported retail sales figures for April has seen sales volumes rise by 1.2% following a rise of 0.1% in March.
Non-food store sales volumes fell by 0.7%, Food rose by 3.9%. Clothing sales volumes fell by 1.8% following strong growth in March and retail sales had been expected to rise by 0.2%.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “Retail sales volumes came in better than expected in April, largely due to very strong food sales. This was no doubt fuelled by warmer weather and Brits dusting off the barbecue much earlier in the year than usual.
The trends from last month effectively reversed with food sales rebounding following last month’s weakness and some non-food categories like clothing falling back, after recent strength.
What happens to UK consumer spending from here is anyone’s guess.
Higher than expected inflation puts pressure on disposable income and suggests interest rates won’t come down as fast as expected. Neither bodes well. On the other hand, a key reason inflation remains sticky is because wages are rising strongly, which puts money directly into consumers’ pockets. This is why the Bank of England faces a very difficult task.
For now, despite the gloomy headlines, there is little sign of consumers cutting back.”
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