Shoppers cut back as bills up by third

FAMILIES cut back on shopping last month as household bills jumped by a third.

Retail sales in May were down by 1.1pc compared with the same month in 2021, the British Retail Consortium found. Helen Dickinson, chief executive, said: “Higher value items, such as furniture and electronics, took the biggest hit as shoppers reconsidered major purchases during this difficult time. It is clear the post-pandemic spending bubble has burst.”

Households saved an average of almost £7,000 after Covid struck, according to the Office for National Statistics, mostly because of lockdowns, when they were unable to spend money in pubs and shops or on travel.

However, they are now unwilling to spend to make up for lost time, largely as a result of inflation hitting 9pc in April, driven by the 54pc jump in the household energy price cap.

Spending on utilities jumped by more than one third in May, according to data from Barclaycard, with groceries and transport also up by almost 5pc. Spending on furniture and outdoor goods has collapsed, plunging by a quarter and one fifth respectively. Spending on digital services and subscriptions is down by 5pc.