Last month, people in Britain didn’t spend much on things they didn’t really need. This happened because the prices for petrol and diesel went up, making it even harder for people to manage their expenses due to the already high cost of living. This information was shared in a report published on Tuesday.
In September, stores in Britain saw sales go up by 2.7%, which is less than the 4.1% increase they had in August, according to the British Retail Consortium. The head of the BRC, Helen Dickinson, explained that the high cost of living is making it tough for families. She mentioned that the prices of petrol, diesel, and housing have gone up.
Things like furniture and electronics didn’t sell very well. Also, because it was warm last month, not many people bought autumn clothes.
Although inflation in Britain has slowed a bit, it’s still high at 6.7% in August. This is more than three times what the Bank of England wants.
The Bank of England had been increasing interest rates, but they stopped last month. However, they’re not sure if this has completely solved the problem.
The BRC’s measure of sales (adjusted for changes in store size) also slowed down, showing a growth of 2.8% in September, compared to 4.3% in August.
The sales numbers from the BRC don’t account for inflation, so it’s likely that the actual number of things sold in September was lower than in August.
According to separate data from Barclays, people spent 4.2% more with their credit and debit cards in September compared to August. This increase was mainly because people were spending more on fuel.
People spent more on food, but they ate out less. This might be because many families are trying to save money for Christmas. However, spending at bars went up faster, thanks to the Rugby World Cup.
Seventy percent of people asked by Barclays said they were trying to spend less, which is a bit higher than in August.
Jack Meaning, who is a top economist at Barclays in the UK, mentioned that this caution from consumers is starting to affect how they spend their money.
He also said, “This shows that things might not be so good for consumers and the businesses that depend on them, even though their leftover money is growing faster than prices. It’s looking like the economy might not change much in the near future.
SOURCE:FRANCE24