World Bank says consumer confidence has already dropped more sharply than in the run-up to previous global recessions
The sharp drop in British retail sales suggests that “the economy is already in recession, says Olivia Cross, assistant economist at Capital Economics.
Retail sales will probably continue to struggle as the cost of living crisis hits harder in the coming months. But nonetheless the Bank of England will still have to raise interest rates aggressively.
The fall in retail sales in August more than reverses the upwardly revised 0.4% monthly rise in July. Sales volumes fell in every major category and the ONS reported that high prices were prompting households to reign in their spending. And this sits comfortably with the fall in consumer confidence to its lowest level on record in August. For example, fuel sales fell 1.7% despite a sharp 6.2% decline in fuel prices in August.
