(Bloomberg) — British consumers reined in spending on clothing in June during a cold spell, another indication that poor weather has contributed to lackluster economic growth. Barclays Plc said that weaker retail sales drove a 0.6% year-on-year drop in card spending last month, the first decline since the depths of the Covid lockdown in early 2021.
Separate figures from the British Retail Consortium and and KPMG showed total retail sales fell 0.2% in June — a reversal of fortunes from an annual gain of 4.9% a year ago.
The figures point to another weak month for retail sales in official data that’s due out next week after the cold period in the first half of June. Retailers have sapped the economy’s momentum in the second quarter with the sector also holding back growth during a wetter-than-usual April. More extreme weather due to climate change is creating larger swings in shopping figures, as Britons go from splurging to restraint in colder months.
“Despite pressure on household finances easing, with petrol and energy costs and shop price inflation all continuing to fall, consumers remain incredibly reluctant to take the brakes off of their spending,” said Linda Ellett, KPMG’s UK head of consumer, retail and leisure. “The stimulus of good weather, Wimbledon and Euro 24, which was hoped would drive consumer spending, has so far failed to materialize and financial concerns remain with many households.” Data from Barclays showed that retail spending fell by 2.
