U.K. Economy Can't Count on Consumer Momentum as Shoppers Flag
- Underlying trend shows sales growth at weakest since 2013
- Shoppers are changing habits to combat faster inflation
Red Peppers are seen in the fruit and vegetable aisle in a Tesco Metro store, operated by Tesco Plc, in London, U.K., on Monday, April 16, 2012. Tesco Plc, the U.K.'s largest supermarket chain, will reduce spending by more than 350 million pounds ($559 million) to ensure it can continue its dividend yield, according to JPMorgan Cazenove.
Photographer: Simon Dawson/BloombergU.K. consumers are flagging, stripping the economy of its most consistent and important support over the past two years.
From a slowdown in spending growth to switching to cheaper brands to save money, the impact of faster inflation on households is clear to see. According to separate reports on Thursday, annual growth in retail sales the quarter through July dropped to 1.8 percent, the weakest in almost four years, while households are ramping up efforts to save money at the supermarket.