UK retail sales surge higher ahead of lockdown easing
As the UK passed the one-year anniversary of the pandemic lockdown, the British people are now starting to spend more time outdoors as the lockdown restrictions eased up and large parts of the economy have reopened on April 12. In spite of the country being in lockdown, a 5.4 percent increase in March where retail sales continued to recover since consumers are spending more on non-food essentials. Clothing sales rocketed as people buy new clothes to update their wardrobes in anticipation of the lockdown easing.
The upcoming spring attracted people towards gardening, adding up to the sales growth. Fuel sales also exhibited an increase as people can travel once again as the restrictions get lifted. Retailers also stated a surge in purchases of mobility equipment as elderly people left their households after their vaccinations.
The UK government borrowed 303.1 billion pounds ($420.1 billion) in the 2020/21 financial year, which ended in March, a jump of 246 billion pounds on the previous twelve months. Borrowing remained at 14.5 percent of economic output, the highest ratio after 1946 when it was 15.2 percent. The numbers reflected the rise in public spending and tax cuts to offset the economic hit due to the pandemic.
The Bank of England (BoE) is waiting to see the result of the magnitude on how households will spend their lockdown savings. This will help it gauge how long it needs to keep its huge stimulus plan in place.
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