Latest retail sales figures ‘disappointing’ as consumers continue to feel the squeeze

Latest retail sales figures ‘disappointing’ as consumers continue to feel the squeeze

Figures released by the Office for National Statistics today for retail sales in December reveal that on an annual basis sales volumes increased by 0.3% in the UK in the year to December and values increased by 0.7%.

Commenting on the figures and the detail of the release, Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “These figures are very disappointing, but hardly surprising as inflation is continuing its relentless squeeze on consumers and although headline employment levels are encouraging the rise in part-time working is also hitting disposable incomes. The economy remains weak and a lack of demand will hamper growth.

“Although online sales fell back from the November level, they accounted for 10.6% of all retail sales, the first time this has exceeded 10% in December, so the upward trend in online shopping continues. Fuel sales recorded an annual fall of 6.6% by volume.

“With inflation unlikely to ease in the near term, and taking into account squeezed consumers, businesses on our high streets will continue to experience difficulties with knock on consequences for the employment they provide. The recovery remains difficult and slow as the Government has failed to grapple with the issue of demand in our economy and has been complacent by allowing external economic conditions to flatter the UK’s performance.”