More downbeat news for the United Kingdom and policy makers, assuring the recovery is hitting a hard block. After the abysmal jobs figures yesterday the retail sales in May also crumbled as Britons pockets suffer further.
Retail sales in May slumped 1.4% following 1.1% gain in April and was much worse than the expected drop of 0.6%. From a year earlier sales rose 0.2% from a revised 2.4% from 2.8% and much below the expected 1.5%.
Excluding auto fuel, or as known as core retail sales, it slumped 1.6% from the previous month when retail sales rose 1.2% and was also much worse than forecasts for a slimmer 0.6% drop. On the year sales were flat following a revised 2.3% gain from 2.7% and the expected 1.7% rise.
With the worsening labor market conditions and rising inflation spending is taking a strong hit. The rise in April was expected as temporary amid the downside pressures on growth as they were only supported by the Easter holiday and the Royal Wedding and as the support faded in May sales plunged strongly in more signals for the slowing recovery.