UK Furniture & Flooring Sector Report summary
May 2022
Period covered: Period covered: 03 April – 30 April 2022
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Furniture & Flooring sales contracted by 00% year-on-year in April against a huge increase of 00% a year ago, according to the Retail Economics Retail Sales Index.
This month’s weak reading was distorted by the strong performance recorded last year as it coincided with the lifting of restrictions of the third national lockdown which saw consumers release pent-up demand on products like...
When compared to pre-pandemic levels, this category has not yet fully recovered – with this month reading falling short by 00% on April’s 2019 spending levels.
Total Retail sales growth continues to slow
UK total retail sales growth came in at 00% YoY in April, according to Retail Economics. This was the fourth consecutive year-on-year decline in spending, and the lowest growth rates recorded since...
Since January, total retail sales are being squeezed due to a combination of falling demand, rising inflation, rising costs and persistent supply chain disruptions.
However, with the pandemic behind us, consumers are getting closer to experiencing their first summer in three years without any covid restrictions, which all things being equal, would see pent up demand released across…
Encouragingly, a festive Easter period coupled with sunny weather helped sustain footfall levels in April, despite slipping by 0.6pp on last month’s reading. However, Springboard suggest sales in bricks-and-mortar stores remained…
Housing market resists economic challenges
The RICS UK Residential Survey for April shows a net balance of +10% of agents noted a rise in new buyer enquiries, similar to the rise last month.
UK house prices rose 10.8% YoY in April (Halifax). Average house prices reach a new record high of £286,079. Over the next twelve months, we expect both house prices and rental prices to keep rising.
Elsewhere, house prices rose for the 10th consecutive month in April (+00% 00), the longest run of monthly rises since 2016. Prices continue to be driven higher by an imbalance between demand and supply with growing buyer demand outweighing relatively low housing stock.
Difficult macro environment
Gfk consumer confidence fell to its lowest levels on record, falling two points to -00 in May. This was fuelled by the continuous increase in household energy prices, deepening cost of living, a rise in national insurance contributions and the persisting Russia-Ukraine conflict.
Similarly, the Major purchases index fell by 8 points from March, to -00 in April. Big ticket items have been hit hardest, as consumers control spending on furniture, electricals and other homewares; compounded by delays on goods coming from China.
In addition, warning of a possible recession, the Bank of England predicts inflation to reach more than 00% this year, as a result of rising commodity prices, transport costs, labour shortages, delays at ports, and global geo-political instabilities.
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UK House Prices reaches new record highs
Source: Halifax, IHS Markit
