Diterbitkan 09/07/2024, 06/29
In June, UK consumer spending contracted, influenced by unfavorable weather conditions. Barclays reported a 0.6% decline in spending via credit and debit cards compared to the same month last year, marking the first decline since February 2021. The decline was attributed to the cold weather experienced at the start of the month.
Karen Johnson, Head of Retail at Barclays, noted the significant impact of unseasonable weather on consumer spending patterns. He said that sluggish demand at the beginning of June prompted several fashion brands to change their sales strategies. However, Johnson also sees an improvement in the situation with the arrival of warmer weather.
The British Retail Consortium (BRC) echoed this sentiment, indicating a 0.2% decline in value sales in June year-on-year, following a 0.7% rise in May. These figures are in line with other indicators showing a slowdown in UK economic growth, contrasting with the rebound experienced in the first quarter following a recession in the second half of 2023.
A focus on increasing economic growth has been high on the agenda for Prime Minister Keir Starmer and his newly elected Labor government, following their victory on July 4. Amid the recent spending contraction, Barclays expressed a positive outlook for the second half of the year, anticipating a fall in interest rates, a rise in real incomes and improved consumer and business confidence.
Despite this optimism, supermarket spending in June fell for the first time in two years, and KPMG, sponsor of the BRC retail sales survey, highlighted that many retailers continue to face challenges. Official data shows that retail sales volumes, excluding gasoline, remain slightly below pre-pandemic levels.
Source: Reuters