By Xavier Fontdegloria
U.K. retail sales fell in August as a decline in households’ real incomes due to high inflation weighed on consumer spending.
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 [email protected]
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