Despite recent data from the Office for National Statistics (ONS) showing that rainy weather has negatively impacted economic performance, a market research index suggests that people are feeling more optimistic about the economy compared to the previous month.
Retail sales took a sharp decline in April, falling by 2.3%, according to the ONS. This was higher than anticipated, as economists had predicted only a 0.4% decrease. The retail sales figures are crucial to household consumption, which is a significant component of the UK economy and impacts overall economic growth measured by gross domestic product (GDP).
Furthermore, revised data showed that March sales figures had decreased by 0.2% instead of remaining stagnant as initially reported. The poor weather in April led to lower sales volumes across various sectors, with clothing stores, sports equipment retailers, games and toys stores, and furniture shops being particularly affected by reduced footfall due to the rainy conditions.
However, despite these challenges in the retail environment, online sales increased slightly, although there was a decline in order volume. Market research data from GfK indicated that consumer confidence was improving as well; the consumer confidence index rose five points for personal finances and four points for the UK economy as a whole. Although it remained negative at -17, this represented an improvement of two points from the previous month.
In conclusion, while rainy weather may have negatively impacted economic performance in April through reduced household consumption and retail sales, consumers’ optimism about the economy is increasing according to market research data from GfK.
