UK retail sales volumes in the February to April period were up just 0.1 per cent on the previous three months, latest official figures show.
This near-stagnation was recorded even though retail sales volumes bounced back by a greater-than-expected 1.6% month-on-month in April on a seasonally-adjusted basis. Economists had forecast a 0.7% rise in sales volumes last month.
Retail sales volumes had fallen 1.1% in March. Food and non-food sales both showed month-on-month rises in April. However, sales in the department stores category fell 0.9%.
Howard Archer, chief economic adviser to the EY ITEM Club think-tank, said: “While retail sales rose 1.6% month-on-month in April, it is premature to celebrate the return of the consumer. While April’s rebound was stronger than expected, the underlying performance in retail sales still looks subdued, with volumes up just 0.1% on a three-month/three-month basis.”
He added: “Consumers still appear to be cautious. They have faced an extended squeeze on their purchasing power, while consumer confidence has been fragile as it [is] pressurised by economic and Brexit uncertainties as well as squeezed purchasing power.”
Euan Murray, relationship director in Barclays’ Scottish corporate banking division, said: “Retailers are doing all they can to attract customers, but the wider economic environment isn’t being kind to the sector, with renewed weakening of the pound again an unwanted distraction that will bring currency and supply chain management back to the top of the agenda for many retail boardrooms.”
While declaring UK consumers were “resilient”, Shore Capital analyst Greg Lawless said: “One word of caution though is the rise in the oil price which is feeding through in higher forecourt prices, which is an unwelcome headwind for the consumer.”
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