Retail growth slows right down thanks to interest rate panic
Retail growth rose by just 0.6% last month, which is the slowest growth since May 2011. Demand for big exciting things like appliances was weaker, and we didn’t spend as much money on food, either, preferring to shop cheaper and rely on offers.
And despite the healthy housing market, it seems we’re holding off on getting that new kitchen or buying accessories for our houses. David McCorquodale from KPMG, who helped to compile the figures for the BRC, said:
‘June saw the brakes applied to spending as shoppers put purchases of big ticket items on hold whilst they waited to see if the Bank of England would take action on interest rates. Even sales of home accessories and furniture flatlined, which is surprising given the UK is reportedly in the midst of a housing boom.’
So it seems like we’re putting everything in the mortgage pot for a rainy day. But Helen Dickinson from the BRC said it was OK, the UK is still on track for economic recovery. She puts it down to competitive food pricing which has changed shopper’s attitudes.
However, once interest rates do rise, we'll be spending NOTHING. We'll see what happens to the economic recovery then, Helen.