Spending by shoppers, drinkers and diners is vital to Britain’s effort to emerge from its deepest recession for three centuries.
News last week that retail sales rebounded by more than forecast in July stood out against a backdrop of unprecedented job cuts at Marks & Spencer Group PLC, a report that consumer confidence remains in the doldrums and the prospect of more local lockdowns after a spike in infections.
The U.K. economy relies on consumer spending more than most other countries in Europe, accounting for 63 percent of output compared with around half in Germany and France. The retail industry has been open for almost two months in much of the U.K. following a lockdown imposed in March, following similar reopenings across the continent. But people in Britain seem to be venturing back out to stores, restaurants and bars more slowly.