UK retail sales take unexpected tumble
Source: Bloomberg News |
March 27, 2013, Wednesday
|
Print Edition
Print Edition
UK retail sales unexpectedly stagnated in March in a sign that consumer spending is under pressure from higher energy bills and weak wage growth.
A gauge of annual sales growth dropped to zero from 8 in February, the London-based Confederation of British Industry business lobby group said yesterday. That's the weakest reading in seven months. Economists had forecast a rise to 9, according to the median of 10 estimates in a Bloomberg News survey. Retailers had also expected sales to grow this month.
The report may damp optimism about the economy's first-quarter performance after data last week showed UK retail sales rose more than forecast in February. Adding to the subdued consumer outlook, wage growth continues to lag behind inflation. Kingfisher Plc, Europe's largest home-improvement chain, said yesterday it sees markets as challenging amid waning consumer spending in the UK and France.
"This month, we've seen a glimmer of hope for retailers fade away," Barry Williams, chief merchandising officer at Wal-Mart Stores Inc's Asda unit and head of the CBI's distributive trades panel. "All eyes are now on April when retailers expect sales to return to form. However, pay freezes and the rising cost of living are hitting households hard."
A gauge of the volume of orders placed with suppliers rose to minus 1 in March from minus 19 in February, while a measure of sales volumes for the time of year stayed at minus 20.
"Sales disappointed expectations in March, putting an end to six months of consecutive growth," the CBI said.
A gauge of annual sales growth dropped to zero from 8 in February, the London-based Confederation of British Industry business lobby group said yesterday. That's the weakest reading in seven months. Economists had forecast a rise to 9, according to the median of 10 estimates in a Bloomberg News survey. Retailers had also expected sales to grow this month.
The report may damp optimism about the economy's first-quarter performance after data last week showed UK retail sales rose more than forecast in February. Adding to the subdued consumer outlook, wage growth continues to lag behind inflation. Kingfisher Plc, Europe's largest home-improvement chain, said yesterday it sees markets as challenging amid waning consumer spending in the UK and France.
"This month, we've seen a glimmer of hope for retailers fade away," Barry Williams, chief merchandising officer at Wal-Mart Stores Inc's Asda unit and head of the CBI's distributive trades panel. "All eyes are now on April when retailers expect sales to return to form. However, pay freezes and the rising cost of living are hitting households hard."
A gauge of the volume of orders placed with suppliers rose to minus 1 in March from minus 19 in February, while a measure of sales volumes for the time of year stayed at minus 20.
"Sales disappointed expectations in March, putting an end to six months of consecutive growth," the CBI said.
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