Rain dampens retail sales figures
Official data shows that sales volumes fell by a greater-than-expected amount in March with retailers blaming poor weather conditions for a reduction in shopper numbers.
The latest ONS statistics revealed that total retail sales volumes fell by 0.9% in March compared to the previous month’s figure. This decline was driven by the sixth-wettest March on record, which hit clothing retailers and garden centres, while food store sales also fell as consumers continued to be hit by soaring prices and shortages of some products.
ONS Director of Economic Statistics Darren Morgan, however, noted that the broader trend was less subdued than March’s figures alone suggest. Mr Morgan said, “A strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.”
Data from GfK’s latest Consumer Confidence Index also points to rising consumer optimism. The headline index increased for the third month in a row to reach -30 in April; this was six percentage points higher than March and the strongest reading since February last year. Consumers’ expectations for the economy and prospects for their personal finances both rose, along with shoppers’ willingness to make expensive purchases.
Further fall in job vacancies
The latest batch of employment statistics revealed a rise in the rate of unemployment and a fall in the number of job vacancies reflecting softer conditions in the labour market.
During the December to February period, the unemployment rate edged up to 3.8%, from 3.7% in the previous three months, to reach its highest level since the second quarter of 2022.
The labour market update also revealed that the total number of job vacancies fell for the ninth month in a row, falling by 47,000 in the January to March period. ONS said that companies had blamed ‘economic pressures’ as a factor for holding back on hiring new staff, although the statistics agency also noted that vacancy numbers still remain at a historically high level.
There was, however, a rise in the number of people looking for work principally driven by more young people leaving full-time education to find a job. In the three months to February, the employment rate edged up to 75.8%, 0.2 percentage points higher than in the previous three-month period, reflecting growth in the number of part-time employees and self-employed workers.