British shoppers cut their spending sharply last month and their confidence is close to record Lows, emphasizing the challenge facing The next prime minister who Should also Take painful measures to slow down fast-rising public borrow.
Published data on Friday added To sign that Britain economy Recession that could deepen due to new Finance Minister Jeremy Hunt plans to stop the crisis in financial Markets after the summary term of Prime Minister Liz Truss.
Retail sales volume fell 1.4% from August – nearly three times fall 0.5% in Reuters poll of Economists – take them below pre-coronavirus pandemic level.
Fuel sales were 10% less than in February 2020 with high prices people Cuts back on drive to save money.
a one-off bank holiday To celebrate the funeral of Queen Elizabeth when many shops Closed, also affected the overall numbers.
Over the three months to September, sales were down 2.0%, the biggest drop since the three months to September 2021.
“In general, we believe that economy he is already in Recession period will continue until the third quarter of 2023 with From top to bottom drop in Gross domestic product of About 2%, similar to the 1990s recession,” said Thomas Pugh, an economist at tax and advisory firm RSM UK.
The pound fell against United State dollar After publishing the data.
Consumers were holding back in their spending with The inflation rate reached 10% and they are also face Prospect of more pressure in 2023 after Hunt said he would cancel the tax cuts that Truss had previously planned.
she announced on Thursday that she will resign, and the process begins of Finding new prime minister by next week.
An overnight survey showed that consumer confidence remained close to 1 record Low as families respond to collect of High inflation and chaos in Britain politics.
The Census Bureau said it was unable to estimate the extent of the influence of Queen’s funeral on Retail sales figures.
“The decline in Sales volume in Most major categories indicate that high inflation remains a heavy burden on spending,” Ruth Gregory, economist with Consulting firm Capital Economics said.
many of retailersIncluding the largest supermarket in Britain group Tesco and online Fashion retailer ASOS warns that profit forecasts for this month are the same face higher Energy and personnel costs, weak pound.
yearly terms total Sales volumes were down The Office for National Statistics said 6.9%, the largest drop since May 2020.
borrow set to the balloon
Separate data for the Office for National Statistics showed Britain had borrowed 20.01 billion pounds ($22.37 billion). in September, more From the expected 17.1 billion pounds in Reuters poll of Economists.
Until now in 2022/23 financial yearwho started in April, borrowing reached 72.5 billion pounds. down About 26% of the same period last year but double the level in The period from April to September of 2019, before the pandemic.
Carl Emerson, Deputy director of Institute for A financial studies think tank said the deficit was in Line with Britain forecast official budget A guard dog, but it will fit again soon Such as government’s expensive energy price subsidies begin.
He said borrow this year It could be nearly 200 billion pounds, double the desk for Budget responsibility expectations.
After unfunded tax deductions in mini budget” of Truss and former Finance Minister Kwasi Kwarting caused support market Defeat, wants to hunt show Investors who British dumped government bonds in The last weeks he can fix The public Finance.
It is scheduled to deliver a budget plan on October 31 which is likely to include spending cuts and further tax increases.
“To stabilize the markets, I was clear that protect public Financial means difficulty decisions Hunt said in Statement after Friday numbers.
“We will do whatever is necessary drive down debt in average term and for ensure that taxpayers money It is well spent, and put public Finance on sustainable path while we grow economy. “
British shoppers cut their spending sharply last month and their confidence is close to record Lows, emphasizing the challenge facing The next prime minister who Should also Take painful measures to slow down fast-rising public borrow.
Published data on Friday added To sign that Britain economy Recession that could deepen due to new Finance Minister Jeremy Hunt plans to stop the crisis in financial Markets after the summary term of Prime Minister Liz Truss.
Retail sales volume fell 1.4% from August – nearly three times fall 0.5% in Reuters poll of Economists – take them below pre-coronavirus pandemic level.
Fuel sales were 10% less than in February 2020 with high prices people Cuts back on drive to save money.
a one-off bank holiday To celebrate the funeral of Queen Elizabeth when many shops Closed, also affected the overall numbers.
Over the three months to September, sales were down 2.0%, the biggest drop since the three months to September 2021.
“In general, we believe that economy he is already in Recession period will continue until the third quarter of 2023 with From top to bottom drop in Gross domestic product of About 2%, similar to the 1990s recession,” said Thomas Pugh, an economist at tax and advisory firm RSM UK.
The pound fell against United State dollar After publishing the data.
Consumers were holding back in their spending with The inflation rate reached 10% and they are also face Prospect of more pressure in 2023 after Hunt said he would cancel the tax cuts that Truss had previously planned.
she announced on Thursday that she will resign, and the process begins of Finding new prime minister by next week.
An overnight survey showed that consumer confidence remained close to 1 record Low as families respond to collect of High inflation and chaos in Britain politics.
The Census Bureau said it was unable to estimate the extent of the influence of Queen’s funeral on Retail sales figures.
“The decline in Sales volume in Most major categories indicate that high inflation remains a heavy burden on spending,” Ruth Gregory, economist with Consulting firm Capital Economics said.
many of retailersIncluding the largest supermarket in Britain group Tesco and online Fashion retailer ASOS warns that profit forecasts for this month are the same face higher Energy and personnel costs, weak pound.
yearly terms total Sales volumes were down The Office for National Statistics said 6.9%, the largest drop since May 2020.
borrow set to the balloon
Separate data for the Office for National Statistics showed Britain had borrowed 20.01 billion pounds ($22.37 billion). in September, more From the expected 17.1 billion pounds in Reuters poll of Economists.
Until now in 2022/23 financial yearwho started in April, borrowing reached 72.5 billion pounds. down About 26% of the same period last year but double the level in The period from April to September of 2019, before the pandemic.
Carl Emerson, Deputy director of Institute for A financial studies think tank said the deficit was in Line with Britain forecast official budget A guard dog, but it will fit again soon Such as government’s expensive energy price subsidies begin.
He said borrow this year It could be nearly 200 billion pounds, double the desk for Budget responsibility expectations.
After unfunded tax deductions in mini budget” of Truss and former Finance Minister Kwasi Kwarting caused support market Defeat, wants to hunt show Investors who British dumped government bonds in The last weeks he can fix The public Finance.
It is scheduled to deliver a budget plan on October 31 which is likely to include spending cuts and further tax increases.
“To stabilize the markets, I was clear that protect public Financial means difficulty decisions Hunt said in Statement after Friday numbers.
“We will do whatever is necessary drive down debt in average term and for ensure that taxpayers money It is well spent, and put public Finance on sustainable path while we grow economy. “