Retail sales fell last month, according to official figures, as the cost of living crisis prompts Brits to dial back spending.
Sale volumes fell by 1.6 per cent in August, continuing a downward trend since summer 2021.
Both food and non-food stores, as well as non-store retailing and fuel forecourts all saw lower sales over the past month, the Office for National Statistics found last month.
In a note today, Capital Economics wrote that the drop in retail sales volumes supports its view that the economy is already in recession.
“Worryingly, essential spending such as food sales took a 0.8 per cent hit and nearly two per cent less fuel flowed through UK petrol forecourts in spite of price reductions,” Ralph Robinson, head of retail at business technology consultancy BJSS said.
“Generally, consumers are shopping around harder, with Aldi overtaking Morrisons to become the UK’s fourth largest supermarket this month… There are tough times ahead, especially for midmarket UK retail.”