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Bloomberg
Such is the state of the UK consumer that even seemingly positive data can reveal bad news about the economy.
After a week of grim reports showing inflation at a four-decade high and consumer confidence at the lowest level since at least 1974, a release showing retail sales unexpectedly rose in April appeared to buck the trend.
The 1.4% increase announced by the Office for National Statistics (ONS) defied economists’ expectations for a 0.3% decline. The result was all the more surprising given the figures cover a month when millions of Britons faced eye-watering rises in their energy bills, alongside a sharp jump in payroll taxes.
However, the details of the report told a less positive story.
The increase was driven by spending on confectionary in supermarkets, which, the ONS suggested, could be “possibly due to people staying in more to save money.†Spending on those items had plunged in the early months of 2022 as Britons returned to restaurants amid easing fears about Covid-19.