High streets and shopping malls felt the heat of Britain cost of living crisis last week, according to grim new figures showing that the country may be on the verge of recession.
Last week, the number of shopping visits decreased by more than 20 percent compared to the same period in 2019, according to a survey by Ipsos.
Good weather has failed to seduce consumers: the number of people has fallen sharply in every region of the UK.
“Main Street is really starting to feel the heat from hot prices, and bills are rising everywhere,” said Susanna Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Buyers helped launch a mini-rally earlier this year when the Kovid wave in Omicron subsided. In February, the number of people rose to 86 percent from levels before Covid, but has now gone in the opposite direction.
“The situation looks more bleak again, as spending on food, energy and transport has risen sharply due to the raw material chaos caused by the invasion of Ukraine,” Ms. Streeter added.
The latest figures show that consumer confidence remains fragile after falling to a record low this month.
Experts have suggested that falling attendance may also be part of a trend that is emerging in that people are killing budgets for events such as parties and holidays rather than spending money on goods, especially for the home.
Furniture sales at hardware stores fell 0.5 percent in April as clothing costs rose and daily flights to the UK rose just over 350 percent in May from the same period last year.
Ruth Gregory, a senior economist from the UK at Capital Econmics, said the impact of low consumer confidence is not yet fully felt.
“Cost-of-living pressures will continue to intensify, and it may take some time to move to retail sales,” Ms. Gregory said.
“Household savings accumulated during the pandemic and a busy labor market mean that low consumer confidence has not had as strong an impact on sales as it has in the past.”
The support announced by Rishi Sunak last week will help to some extent, but real disposable income is expected to continue to fall by an average of 1 percent this year, Ms. Gregory said.
This happened after the figures showed that the price of some major assortments of supermarkets jumped by as much as 50 percent.
The Office for National Statistics (ONS) found that pasta in a basket increased the most among a basket of 30 items viewed, and the price doubled.
The crunch was the second fastest growth in the year to April: a 17 per cent increase and a 12 pence increase in cash terms, which rose from 71 pence in April 2021 to 83 pence in April 2022.
Five products in the basic range of supermarkets grew by 15 percent or more.
In monetary terms, the largest increase in prices on average was recorded for ground beef and chicken breast, which rose by 32 pensions per 500 g and 28 pence per 600 g, respectively.
However, the official statistical body found that overall prices for the cheapest food have grown at about the same rate as for food in general.
It stressed that the figures, which were prepared after the campaign by food writer Jack Monroe, were experimental and estimated prices for only a relatively small range of goods.
This comes at a time when the Russian blockade of Black Sea ports has left 25 million tons of grain in Ukraine, threatening famine in the poorest countries, but with serious consequences for the UK, which depends on food imports.
High streets are experiencing the heat of the cost of living crisis when visitor numbers fall 20% below Covid
Source link High streets are experiencing the heat of the cost of living crisis when visitor numbers fall 20% below Covid