The U.K’S retail sales fell much more than expected in August, in another sign that the economy is sliding into recession as the cost of living crunch squeezes households’ disposable spending.
Retail sales volumes dropped by 1.6% in monthly terms in August, the Office for National Statistics said – the biggest fall since December 2021.
All main sectors (food stores, non-food stores, non-store retailing and fuel) fell over the month; this last happened in July 2021, when all legal restrictions on hospitality were lifted.
Non-food stores sales volumes fell by 1.9% over the month while Non-store retailing (predominantly online retailers) sales volumes fell by 2.6% in August 2022; despite this fall, sales volumes were 24.4% above their February 2020 levels.
The news has seen the pound slump to its lowest level since 1985 down 1pc against the dollar, falling below $1.14 for the first time since 1985.Retail sales remain 5.4pc lower than a year ago
