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UK retail sales show surprising resilience

Plucky consumers keep spending ahead of tax cuts and likely summer fall in interest rates.

22 March 2024

After January’s strong surge in retail spending in the UK, February was expected to see something of a pullback. However, the plucky consumer appears to have thrown caution to the wind, and sales volumes were unchanged over the month. With the deluge of rain care of El Nino, maybe we were all loading up on wet weather gear as clothing saw the largest increase in purchases, rising 1.7% over the month. With tax cuts allowing for consumer spending to go just a little bit further, this will be welcome news to the embattled government and with interest rate cuts expected to be in the offing in just three months, the economic backdrop is shifting to a more positive stance.

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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

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