Jakarta, CNBC Indonesia – The risk of a recession is consuming many countries, one of which is the UK. Retail sales in one of the European countries have now fallen due to the soaring cost of living which has put pressure on household spending.
Data from the Office for National Statistics (ONS) reported that retail sales volumes fell 1.6% month-on-month in August, the largest decline since December 2021. The data also showed that the pound it fell further to $ 1.14.
It was the worst drop of all forecasts in a Reuters poll of economists that showed a 0.5% drop.
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The ONS also noted that all major retail sectors, from groceries, non-food stores, non-store retail and fuel, declined for one month for the first time since July 2021. This declined. when Covid-19 restrictions on hospitality were lifted.
“As a difficult winter approaches, retailers will be concerned that shoppers have cut their spending despite the summer,” said Lynda Petherick, Accenture’s retail leader.
The period of mourning following the death of Queen Elizabeth II also poses another challenge for the retail sector, with the closure of widespread commercial activities on Monday at the Queen’s funeral.
“The gloomy mood in the UK this week and news of slow economic growth will add to concerns among retailers as the weather turns colder,” Petherick said.
Despite inflation falling below 10% last month, UK households are still grappling with the biggest price hikes since the early 1980s, largely due to soaring energy prices. following the Russian invasion of Ukraine.
The ONS said people have cut back on furniture purchases since last month. “Feedback from retailers suggests that consumers are cutting back due to rising prices and accessibility issues,” she said.
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