# UK retail sales jump unexpectedly, but big picture bleak Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: British Retail Sales Surge in April Amid Cost-of-Living Meta Description: Despite a bleak consumer confidence, British retail sales saw an unexpected jump in April, driven by increased alcohol and tobacco purchases, according to Reuters. URL: https://financedigest.com/uk-retail-sales-jump-unexpectedly-but-big-picture-bleakhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-20t081148z1lynxnpei4j08xrtroptp4britain-economy-1737287372541-compressed.jpg) By Andy Bruce LONDON (Reuters) -British retail sales jumped unexpectedly in April as shoppers loaded up on alcohol and tobacco, likely a blip in an otherwise bleak trend that has driven consumer confidence to all-time lows amid a worsening cost-of-living crunch. Retail sales volumes rose 1.4% month on month after a 1.2% drop in March, the Office for National Statistics said. Economists polled by Reuters had [expected a 0.2% monthly fall](https://www.financedigest.com/uk-manufacturers-expect-output-to-fall-3-2-in-2023.html "UK manufacturers expect output to fall 3.2% in 2023"). The wider picture remains disconcerting. Retail [sales in the three months](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") to April fell 0.3%, after a 0.7% drop in March. Compared with a year ago, [sales volumes were 4.9% lower](https://www.financedigest.com/germany-to-lower-sales-tax-on-gas-to-7-in-bid-to-relieve-consumers.html "Germany to lower sales tax on gas to 7% in bid to relieve consumers"), marking the biggest annual drop since January 2021. Earlier on Friday, Britain’s longest-running gauge of [consumer confidence](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence"), the GfK survey, fell to its lowest since records began in 1974. British consumers were hit last month by a double whammy of surging in household energy costs and higher taxes, and [data published this week showed inflation](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data") hit a 40-year high of 9.0%. The [Bank of England thinks inflation](https://www.financedigest.com/be-really-really-careful-on-inflation-bank-of-englands-haskel.html "Be ‘really, really careful’ on inflation – Bank of England’s Haskel") will climb above 10% later this year. With [price pressure set](https://www.financedigest.com/unicredit-sets-out-8-billion-aid-package-for-italy-clients-hit-by-surging-prices.html "UniCredit sets out billion aid package for Italy clients hit by surging prices") to persist through the rest of the year, households are likely to have to pare back discretionary spending, putting the brakes on economic growth,” said David Muir, senior economist at Moody’s Analytics. For the [Bank of England](https://www.financedigest.com/what-to-make-of-the-headlines-brexit-and-bank-of-england-policy-eba-bank-stress-tests.html "What to make of the headlines? Brexit and Bank of England policy, EBA bank stress tests"), the challenge will be to walk the fine line between bringing inflation down while not tipping the economy into recession. The ONS said food store sales rose by 2.9% in April, largely driven by [strong sales](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") of alcohol, tobacco and ‘sweet treats. This was “possibly due to people staying in more to [save money,”](https://www.financedigest.com/how-to-save-money-for-a-car.html "How to save money for a car") ONS statistician Heather Bovill said. Online clothes [sales also did well as people](https://www.financedigest.com/sodexo-tops-q1-sales-estimates-as-people-return-to-offices.html "Sodexo tops Q1 sales estimates as people return to offices") got ready for summer holidays and weddings, she added. Leading supermarket groups including Tesco and Sainsbury’s have [warned of lower profits](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") this year and Premier Foods, the maker of Mr Kipling cakes and OXO stock cubes, said it would raise prices of its products. (Reporting by Andy Bruce and David Milliken; editing by William James and John Stonestreet) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---