‘Dismal’ month for supermarkets pushes down retail gross sales | EUROtoday

UK retail gross sales fell sharply final month after “dismal” gross sales at supermarkets, official figures present.

Sales volumes had been estimated to have fallen by 2.7% in May, the largest month-to-month fall since December 2023, in response to the Office for National Statistics (ONS).

It stated there have been indicators that alcohol and tobacco gross sales had been decrease after clients selected to make cutbacks.

Separate figures from the ONS confirmed that authorities borrowing rose final month, hitting the second highest stage for May since month-to-month started in 1993.

Borrowing – the distinction between spending and tax revenue – was £17.7bn, up £0.7bn from May final yr.

The ONS stated income from revenue tax and National Insurance contributions elevated, however spending rose by extra, partly as a result of inflation-linked uplifts to many advantages.

May’s fall in gross sales adopted a 1.3% rise in April, when gross sales had been boosted by sunny climate.

The ONS figures present that gross sales volumes within the three months to May are nonetheless up by 0.8% in comparison with the earlier three months, which is seen as a greater information to underlying tendencies.

However, Paul Dales, chief UK economist at Capital Economics, stated the newest figures added to “other evidence that the burst of economic growth” within the early a part of the yr “is over”.

He stated a few of May’s decline was because of the enhance in April from the nice and cozy climate fading, however “the ONS also said retailers noted inflation was prompting consumers to cut back”.