Retail sales in the U.K. declined in August as falling households’ real incomes due to high inflation weighed on consumer spending on goods.
Retail sales volumes fell 1.6% on month in August, swinging from a revised 0.4% increase in July, the Office for National Statistics said Friday.
Economists polled by The Wall Street Journal expected retail sales to decline 1.4% on month.
August’s monthly fall was broad-based, with declines in all main sectors, the ONS said.
The U.K. gross domestic product grew slightly in July, led by a rebound in the services sector, but economists broadly expect the country’s economy to face a recession in the coming quarters as the cost-of-living crisis hits consumption and investment.
Write to Xavier Fontdegloria at firstname.lastname@example.org