UK retail sales slipped for the first time in three months in February, underlining the fragility of consumer spending even before the latest global energy shock began to take hold.
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.
The slowdown came against a backdrop of subdued consumer demand, with supermarkets reporting weaker volumes and poor weather dampening sales of household goods and seasonal items.
Crucially, the figures were compiled before the escalation of the Middle East conflict involving Iran, a development that is expected to push inflation higher and place additional strain on household finances in the months ahead.
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.
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