"Data from the Office for National Statistics (ONS) showed sales volumes fell by 0.4 per cent during the month, reversing a 2 per cent increase in January. Although the decline was less severe than analysts had forecast, it signals a loss of momentum in the retail sector at a time when economic conditions were already tightening."
"Economists warn that rising energy costs, already feeding through into fuel prices and utility bills, are likely to squeeze disposable incomes further, forcing consumers to cut back on discretionary spending."
"Despite the monthly fall, the broader trend over the past quarter remains slightly more positive. Sales volumes rose by 0.7 per cent in the three months to February compared with the previous period, supported by stronger online activity and niche categories such as art and collectibles."
UK retail sales experienced a 0.4% decline in February, reversing a previous 2% increase in January. This decline highlights fragile consumer spending amid tightening economic conditions. Supermarkets reported weaker volumes, and adverse weather affected sales of household goods. The figures were compiled before the escalation of the Middle East conflict, which is expected to increase inflation and strain household finances. Despite the monthly drop, sales volumes rose 0.7% over the past quarter, driven by online activity and niche categories, although annual growth slowed to 2.5%. Performance varied across sectors.
Read at Business Matters
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