Surveys reveal that British retailers witnessed their sales dwindle in the month of August as customers roll back on unnecessary purchases and a few households accumulated food items prior to Brexit.
Annual total sales growth was at its all-time low, recorded at 0.3% during the month of July which further declined to zero according to the British Retail Consortium that brackets major supermarkets along with high-street chains.
This further deteriorated the average sales growth in the last 12 months to 0.4% which is the lowest since data compiling was started by BRC in 1995.
BRC chief executive, Helen Dickinson said, “ Prominent uncertainty over the political and economic situation has led to declining consumer demand. Where summer gave a little push to the sale of food items, it was invalidated by decreased sales of non-food products.”
Economists believe that these hints of reductions in expenditures by households spark the risk of recession as Britain prepares to exit the European Union.
Prime Minister Boris Johnson intends to pull Britain out of the European Union on October 31 without a potential deal unless Brussels agrees to negotiate as per his demands which remain unaccepted so far.
Payments card firm informed a monthly growth in consumer spending at 1.3% which is extremely moderate as compared to last year’s growth of 4.5% in August.
Esme Hardwood, a Barclaycard director said, “ A weak pound and rising prices are becoming a deep concern for many.”