Introduction: UK retail sales drop in wet March
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
British consumers bought less stuff last month, as inflation ate into household budgets and wet weather drove shoppers from the high street.
Retail sales volumes across Great Britain dropped by 0.9% in March, new figures from the Office for National Statistics show.
That follows a 1.1% rise in February 2023, which had lifted hopes for economic growth this year.
On an annual basis, overall retail sales volumes fell by 3.1% last monh compared to March 2022. But, shoppers spent 4.5% more to buy less, reflecting price increases over the last year – as this chart shows:
The ONS reports that sales volumes at “non-food stores” fell by 1.3% during March, following a rise of 2.4% in February. Retailers blamed “poor weather conditions throughout most of March” for affecting sales.
Food store sales volumes fell by 0.7% in March 2023, following a rise of 0.6% in February 2023.
Food prices have been rocketing higher, with food and drink inflation at a 45-year high over 19%.
But, there are some signs that consumer confidence is improving. The consumer confidence index issued by market researcher GfK has risen by six points to minus 30 in April.
That follows a two-point increase in the previous month, and could be an early sign of an economic recovery.
The latest PMI surveys from the UK, across the eurozone, and the US, will show how companies are faring this month.
The agenda
-
7am BST: UK retail sales figures for March
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9am BST: Eurozone ‘flash’ purchasing manager surveys for April
-
9.30am BST: UK ‘flash’ purchasing manager surveys for April
-
2.45pm BST: US ‘flash’ purchasing manager surveys for April
Key events
The weakness in UK retail sales in March was “widespread”, says Paul Dales of Capital Economics, although it can partly be blamed on the bad weather:
Food sales dropped by 0.7% m/m, partly due to shortages on the shelves, and sales fell in four of the other six main categories.
The 3.2% m/m and 1.7% m/m respective declines in department store and clothing sales were reportedly due to March being the wettest March in 40 years.
Despite the poor weather keeping shoppers at home, online sales dipped by 0.8% m/m. Household goods and fuel sales eked out rises of 0.1% m/m and 0.2% m/m respectively.
However, Dales is encouraged that retail sales rose over the last quarter, by 0.6%.
That’s the first rise in a full quarter since Q2 2021 and suggests that the 18-month retail “recession” may have come to an end.
UK department stores felt the brunt of the bad weather in March, with sales volumes dropping by 3.2% for the month.
Clothing shops reported a 1.7% fall, while sales volumes at other non-food stores, such as jewellery stores and garden centres, fell by 0.6%.
Government accounts on Twitter have grey ticks that note their connection with government agencies, which should help users spot the real Joe Biden from presidential impersonators, for example.
UK prime minister Rishi Sunak has the grey tick too, as does the @10DowningStreet account…. and Labour leader Keir Starmer, and Liberal Democrat leader Ed Davey too.
But the grey tick may not extend to every politician.
The Australian prime minister, Anthony Albanese, has been given a grey tick, but the opposition leader, Peter Dutton, has a blue tick indicating he has subscribed to Twitter Blue.
Here’s a guide to spotting who’s really who on Twitter:
The drop in UK retail spending last month means that sales volumes are 0.7% below their levels before the Covid-19 pandemic began:
Darren Morgan, ONS director of economic statistics, says:
“Retail fell sharply in March as poor weather impacted on sales across almost all sectors.
“However, the broader trend is less subdued as a strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.
“In the latest month, department stores, clothing shops and garden centres experienced heavy declines as significant rainfall dampened enthusiasm for shopping.
“Food store sales also slipped, with retailer feedback suggesting the increased cost of living and climbing food prices are continuing to affect consumer spending.”
While losing their blue tick could prick the egos of some Twitter users, it also increases the risks of impersonation by fake accounts.
Overnight, the US Citizenship and Immigration Services warned its followers to watch out for imposters.
Though we have lost our checkmark, this is the official USCIS twitter account. Please beware of imposter accounts.
When in doubt, visit https://t.co/069mgZuKzZ for the latest immigration and citizenship information, with direct links to our social media.
— USCIS (@USCIS) April 20, 2023
Twitter has previously advised government entities to apply for a free blue check through a special program, but some have reported they had thus far been unable to do so, my colleague Kari Paul explains, adding:
Experts have stated that the failure to verify such entities increases the risks of scams and even threatens to collapse disaster response online, with agencies like the National Weather System now check-less.
Musk chips in, for a few celebs….
Horror novelist Stephen King found that he still has a blue tick following the purge of legacy verified accounts on Thursday.
Last November, King had declared he wouldn’t sigh up for Twitter Blue, telling his seven million followers that Musk should pay him for producing content on the social media site.
King, who had promised to be ‘gone like Enron’ if Elon Musk started charging a fee for verification, insists he hasn’t subscribed….
My Twitter account says I’ve subscribed to Twitter Blue. I haven’t.
My Twitter account says I’ve given a phone number. I haven’t.— Stephen King (@StephenKing) April 20, 2023
…prompting Musk to reply that King was ‘welcome’:
The world’s second-richest man appears to be chipping in for a few accounts, including basketball player LeBron James and actor William Shatner, as the Verge explains here.
I’m paying for a few personally
— Elon Musk (@elonmusk) April 20, 2023
Elon Musk’s Twitter pulls plug on ‘verified’ blue ticks
Kari Paul
Twitter has finally removed its “legacy” blue checks from formerly verified Twitter accounts, as policies implemented under new owner Elon Musk began to take hold, my colleague Kari Paul writes.
Musk, who purchased the company for $44bn in 2022 and has thus far struggled to make it profitable, has been threatening to remove what he called “legacy blue checks” for months now. The checkmark previously denoted accounts that had been verified for authenticity and was given to accounts of celebrities, journalists and media outlets.
Now users seeking verification will have to pay for Twitter Blue, a controversial $8 a month subscription program under which any account can obtain a blue checkmark.
The rollout of the changes on Thursday was chaotic. Numerous high-profile users took to the platform to assert they would not pay for blue checkmarks under the new policy, while others announced they would leave the platform entirely.
Nonprofit organizations Human Rights Watch and the NAACP have tweeted they will not be paying for Twitter Blue.
Famous names such as Hillary Clinton, Bill Gates, Kim Kardashian and Justin Bieber are among those who are no longer verified.
Economist Mariana Mazzucato is one of many criticising the move, accusing Musk of ‘capricious whim’:
Lost my @Twitter blue tick tonight due to capricious whim of little boy @elonmusk. So be it. But why oh why would anyone pay for his little games, greed and short attention span. An insult to human intelligence. Play on.
— Mariana Mazzucato (@MazzucatoM) April 20, 2023
Introduction: UK retail sales drop in wet March
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
British consumers bought less stuff last month, as inflation ate into household budgets and wet weather drove shoppers from the high street.
Retail sales volumes across Great Britain dropped by 0.9% in March, new figures from the Office for National Statistics show.
That follows a 1.1% rise in February 2023, which had lifted hopes for economic growth this year.
On an annual basis, overall retail sales volumes fell by 3.1% last monh compared to March 2022. But, shoppers spent 4.5% more to buy less, reflecting price increases over the last year – as this chart shows:
The ONS reports that sales volumes at “non-food stores” fell by 1.3% during March, following a rise of 2.4% in February. Retailers blamed “poor weather conditions throughout most of March” for affecting sales.
Food store sales volumes fell by 0.7% in March 2023, following a rise of 0.6% in February 2023.
Food prices have been rocketing higher, with food and drink inflation at a 45-year high over 19%.
But, there are some signs that consumer confidence is improving. The consumer confidence index issued by market researcher GfK has risen by six points to minus 30 in April.
That follows a two-point increase in the previous month, and could be an early sign of an economic recovery.
The latest PMI surveys from the UK, across the eurozone, and the US, will show how companies are faring this month.
The agenda
-
7am BST: UK retail sales figures for March
-
9am BST: Eurozone ‘flash’ purchasing manager surveys for April
-
9.30am BST: UK ‘flash’ purchasing manager surveys for April
-
2.45pm BST: US ‘flash’ purchasing manager surveys for April
