Retail sales fell in May as consumers reined in their spending amid belt-tightening due to the cost-of-living crisis, according to official figures.
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The Office for National Statistics (ONS) said the drop in retail sales over the month came as signs mounted that the cost-of-living crisis is beginning to take its toll on the economy.
The ONS also revised down sales growth in April, from the 1.4% previous estimation to an increase of 0.4%. It found that sales in supermarkets dropped 1.5% over May, with a 2.2% drop in specialist shops such as butchers and bakers.
The data showed a pull back in spending on household goods and in department stores, with sales dropping 2.3% and 1.1% respectively, as shoppers worry about affordability.
The ONS said non-food stores sales were unchanged in May, with a 2.2% increase in clothing sales offset by a fall in household goods.
The proportion of online sales slipped back to 26.6% from 27.1% in April as shoppers increasingly returned to stores, but the ONS said this remained “substantially higher than before the pandemicâ€.
UK consumer confidence has fallen to the lowest level since records began during the month of June, according to the latest figures from GfK.
GfK’s long-running Consumer Confidence Index decreased one point to -41, a new record with four measures down in comparison to the May 20 announcement, with one remaining flat.
It revealed the index measuring changes in personal finances over the last 12 months decreased one point to -23; this is 23 points worse than June 2021. The forecast for personal finances also decreased three points to -28; this is 39 points lower than this time last year.
The measure for the general economic situation of the country was also down two points at -65; this is 18 points lower than in June 2021.
Consumer expectations for the general economic situation have also taken a hit during the month, falling one point to -57; this is 55 points lower than June 2021.
Notably, the Savings Index is down one point this month at +9; this is 12 points lower than this time last year with the Major Purchase Index having stayed the same in June at -35; 30 points lower than the previous year. ■