UK Retail growth slows as shoppers cut back on some items but not on food.

These latest figures from the Office for National Statistics (ONS) attracted comment from some analysts suggesting that the UK consumer is in a better place than expected and this could bode well for the future.

The continuing recovery of the UK economy is reliant on the consumer.

Since the BREXIT referendum and despite weak wage growth – consumer spending seems to be resilient. Economists had expected falling wage growth  to adversely affect consumer spending – but  falling ‘real’ incomes have not slowed consumer spending down by as much as expected – so far. This is a conundrum to analysts – but it potentially bodes well for future economic growth – we’ll see.

My personal view is that smaller retail businesses are under enormous strain. Inflationary pressures on consumer spending and uncertainty over BREXIT have created a lack of confidence with the small business owner.