Retail spending drops
Predicted fall arrives on schedule
June 20 2002
The much-anticipated fall in UK consumer spending materialised in May
The figures from the Office of National Statistics showed retail sales down 0.6 per cent in May after rising a hefty 1.8 per cent the month.
A number of retailers, including Mark & Spencer chairman Jean Luc Vandevelde, have recently questioned the sustainabilty of consumer spending even as they reported the upward trend in sales.
The figures reduce the likelihood of an early rise in UK interest rates, particulalry coming on the same day as a Royal Institution of Chartered Surveyors report which suggests house prices have also stabilised.
The ONS said the retail figures could be affected by the shift in the second May Bank Holiday to June.
Clothing sales were down 5.2 per cent on April, while household goods grew 2.2 per cent month-on- month, with part of the increase due to people upgrading their TV sets ahead of the World Cup. The full effects of the Jubilee and World Cup on spending will show through in next month’s figures.
