UK apparel retailers will need to make smart decisions in the coming months as clothing and footwear are attributed to the UK’s gross domestic product (GDP) falling 0.1% in Q2 following the Bank of England increasing interest rates and announcing a recession later this year, reports Just Style.
According to the UK’s Office for National Statistics (ONS), the decline in the UK’s gross domestic product (GDP) for the second quarter of 2022 a week after the Bank of England announced the country is projected to enter recession from the fourth quarter of this year.
The real household expenditure fell by 0.2% between April and June this year, which was driven by falls in clothing and footwear, net tourism, food, and non-alcoholic beverages, and restaurants and hotels, the report explained.
It points out this was partially offset by rises in expenditure on transport, housing, and health.
In current price terms, however, household expenditure rose by 2.6% in the period, reflecting recent inflationary pressures on the value of this spending.