UK Retail Economic Briefing Report summary
May 2022
Period covered: Period covered: 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.
Economic activity
UK GDP is estimated to have increased by 00% in Q1 2022. This is 0.7% above its pre-coronavirus level (Q4 2019).
Growth in Q1 2022 came on the back of a strong performance in January as Covid-19 restrictions eased, with the economy being hit more recently by supply chain disruption and cost of living concerns.
OBR has revised down its GDP forecast for 2022 from 6.0% to 00%, reflecting greater economic uncertainty following Russia’s invasion of Ukraine.
Confidence
GfK’s Consumer Confidence barometer is now at the lowest level since records began, dropping 00 points to -00 in May.
The major purchases index fell for the sixth consecutive month, dropping another 00 points to -00 in May, a further indication that consumers intend to cut back.
Business confidence rose for the first time in three months in May, rising 5 percentage points to 00% having fallen sharply in March following Russia’s invasion of Ukraine.
Inflation
The headline rate for inflation rose by 2.0 percentage points to 00% YoY in April – the highest level for forty years.
April’s rise was slightly behind economists forecasts of 00%, with inflation surging off the rise in the energy price cap, VAT increase within the hospitality sector, and further uplift in fuel prices.
The Retail Economics Cost of Living Tracker shows that discretionary income among the least affluent (money left after paying for essentials) fell 00% YoY in April. This equates to £00 per month less to spend on non-essential items.
Credit and Housing Market
The latest data shows that the housing market continues to…
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Inflation at 40-year high
Source: ONS, Retail Economics
