Retail sales in the UK saw a significant drop of 2.3% in April 2024, posing a challenge to Prime Minister Rishi Sunak following a General Election call. The decline, which was higher than economists’ expectations, was largely attributed to adverse weather conditions and high prices, indicating concerns among consumers. In contrast, department stores and online retailers reported improved sales, highlighting mixed performance across different sectors.
Retail sales in the UK dropped significantly in April 2024, posing a challenge to Prime Minister Rishi Sunak just after he called a General Election. The Office for National Statistics (ONS) reported a 2.3% decline in retail sales, following a 0.2% fall in March. Economists had expected a softer decline of 0.6%. This represents the joint steepest fall since January 2021.
Non-food stores, including clothing and household goods, experienced a 4.1% dip in sales volumes, with annual retail figures showing a 2.7% drop from April 2023 and a 3.8% decrease from pre-pandemic levels. Department stores and online retailers were the exceptions, showing improved sales.
The poor performance in April has been attributed to heavy rain and storms, which reduced footfall. Sunak and Chancellor Jeremy Hunt had recently highlighted positive economic growth and falling inflation, but these latest figures bring a new challenge ahead of the July 4 election.
Economist Oliver Vernon-Harcourt and Charlie Huggins pointed to the weather and high prices as key factors, indicating persistent caution among consumers. TUC General Secretary Paul Nowak emphasized the continued pressure on household budgets amid a cost-of-living crisis.
In related economic news, Japan saw a deceleration in inflation in April 2024. Headline annual CPI rose by 2.5%, down from 2.7% in March, and core inflation, which excludes food but not energy, slowed to 2.2% from 2.6%. Despite the slowdown, the Bank of Japan (BoJ) is expected to hold rates at its June meeting, although indicators suggest private demand remains subdued. The BoJ may undertake one additional rate hike by the end of 2024.
