Shoppers splash the cash: Retail sales shoot up at their fastest rate in seven years
Britain has become a nation of spenders as households that hoarded cash during the pandemic open their wallets.
Retail sales shot up year-on-year in August at the fastest rate for seven years, as shoppers were released from their lockdown shackles and began to spend some of the £200billion they have squirrelled away.
And orders grew at the fastest pace since records began in 1983, according to data from the Confederation of British Industry (CBI), indicating that demand is not slowing soon.
Spending spree: Retail sales shot up year-on-year in August as shoppers were released from their lockdown shackles and began to spend some of the £200bn they have squirrelled away
The spending rise was just what economists at the Bank of England were hoping for post-lockdown, as they predicted consumers would fuel Britain’s recovery.
But the rebound is now being hamstrung by a lack of staff and a shortage of goods. Firms have been unable to recruit workers – especially HGV drivers – and, for manufacturers, the clamour for raw materials has depleted stocks and raised prices.
The CBI found that average selling prices climbed in August at the fastest pace since November 2017.
But firms are warning of Christmas chaos due to a lack of staff.