UK retail sales down for second consecutive month

For a second consecutive month, UK retail consumer confidence is low in a period where house prices are crippling disposal income, as well as increased inflation and tightening credit conditions as economists had forecast a 0.5 percent drop.

New orders were down by 1 percent month on month, whilst industrial orders declined even after annual growth of 9.9% back in February.

Consumer spending certainly seems to be slowing quite a lot,’ said Nick Bate, an economist at Merrill Lynch & Co. and consumer spending has slowed down as incomes are being eaten by inflation.

Despite record profits, Marks & Spencer Group Plc, the UK’s biggest clothing seller did report a slowdown and that amid difficult market conditions, staff bonuses are to be cut in a period where business investment fell 1.4 percent in the first quarter.

Following the report by the National Statistics Office, the pound rose as much as 0.6 percent against the dollar.

Food sales fell by 1 percent whilst household goods were down 1.4 percent compared to last month as consumer confidence is at its lowest levels since 1992.

In order to attract custom and boost recovery, retailers cut prices by 0.9 percent from last year.

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