This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/jul/12/consumer-spending-slows-recession-eu-referendum-retail-sales-bad-weather

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Consumer spending slowed to recession levels before EU referendum Consumer spending slowed to recession levels before EU referendum
(about 1 month later)
Consumer spending grew at its slowest rate since the depths of the 2008-09 recession in the three months leading to the EU referendum, but retailers have blamed bad weather for the tough trading conditions.Consumer spending grew at its slowest rate since the depths of the 2008-09 recession in the three months leading to the EU referendum, but retailers have blamed bad weather for the tough trading conditions.
The monthly survey of high street and online sales from the British Retail Consortium and KPMG found that sales in the second quarter of 2016 were up 0.5% on the first quarter and 1.2% up on an annual basis. The BRC said this was the weakest performance since May 2009, when the economy was contracting during its longest and deepest postwar recessions.The monthly survey of high street and online sales from the British Retail Consortium and KPMG found that sales in the second quarter of 2016 were up 0.5% on the first quarter and 1.2% up on an annual basis. The BRC said this was the weakest performance since May 2009, when the economy was contracting during its longest and deepest postwar recessions.
In June alone, total sales were 0.2% higher than in the same month last year, but were 0.5% lower on a like-for-like basis, which takes account of increased retail capacity over the past 12 months.In June alone, total sales were 0.2% higher than in the same month last year, but were 0.5% lower on a like-for-like basis, which takes account of increased retail capacity over the past 12 months.
David McCorquodale of KPMG said: “As consumer attention shifted indoors to escape autumnal downpours, furniture and home accessories bounced back in the month, with bigger-ticket items proving relatively resilient in the days immediately following the EU referendum.David McCorquodale of KPMG said: “As consumer attention shifted indoors to escape autumnal downpours, furniture and home accessories bounced back in the month, with bigger-ticket items proving relatively resilient in the days immediately following the EU referendum.
Related: Spending growth slows as shoppers delay big purchases
“With May sunshine a distant memory, however, summer wardrobes remained bare as sales of women’s fashion and footwear plummeted following one of the wettest and dullest starts to a UK summer since records began.”“With May sunshine a distant memory, however, summer wardrobes remained bare as sales of women’s fashion and footwear plummeted following one of the wettest and dullest starts to a UK summer since records began.”
A separate report from the British Chambers of Commerce showed that companies were finding business conditions tough even before the result of the 23 June vote led to heightened anxiety about the outlook for the economy.A separate report from the British Chambers of Commerce showed that companies were finding business conditions tough even before the result of the 23 June vote led to heightened anxiety about the outlook for the economy.
In its quarterly report, the BCC reported that weakening domestic and overseas sales for the services sector and continuing poor performance by manufacturing would have required action from the government even had the UK voted to remain in the EU.In its quarterly report, the BCC reported that weakening domestic and overseas sales for the services sector and continuing poor performance by manufacturing would have required action from the government even had the UK voted to remain in the EU.
Adam Marshall, BCC acting director general, said: “Even before the EU referendum, both business confidence and economic growth were softening in many parts of the UK. Our latest survey results, captured just before the vote, suggest that many businesses have been operating in something of a holding pattern for some time.”Adam Marshall, BCC acting director general, said: “Even before the EU referendum, both business confidence and economic growth were softening in many parts of the UK. Our latest survey results, captured just before the vote, suggest that many businesses have been operating in something of a holding pattern for some time.”
Marshall said it was too early to say what impact the leave vote had had on most firms, with only anecdotal evidence from those facing a more challenging environment and those seizing new opportunities.Marshall said it was too early to say what impact the leave vote had had on most firms, with only anecdotal evidence from those facing a more challenging environment and those seizing new opportunities.
He added: “At a time of transition, all the businesses I speak to want Westminster to lead by example – by making bold decisions to progress key infrastructure and construction projects, by guaranteeing that EU workers can stay in British firms, and by seeking the best possible future terms of trade for the UK.”He added: “At a time of transition, all the businesses I speak to want Westminster to lead by example – by making bold decisions to progress key infrastructure and construction projects, by guaranteeing that EU workers can stay in British firms, and by seeking the best possible future terms of trade for the UK.”
Speaking before Theresa May was announced as the next prime minister, Marshall said: “Business confidence would be buoyed by strong and clear leadership, both on the timeline for EU negotiations and on the big decisions unrelated to our future relationship with the EU.”Speaking before Theresa May was announced as the next prime minister, Marshall said: “Business confidence would be buoyed by strong and clear leadership, both on the timeline for EU negotiations and on the big decisions unrelated to our future relationship with the EU.”