UK cost of living crisis dents retail sales and service sector

Spending on food in March fell for the fifth consecutive month as supermarkets reported a sharp drop in sales. Photograph: John Martin/Alamy

Britain’s economy is showing growing signs of stress from the soaring cost of living amid a sharp fall in retail sales and the biggest loss of momentum for service sector activity since Omicron hit businesses at the end of last year.

Figures showed that a bigger than expected decline in March retail sales was followed by a slowdown across the economy in April, with record inflationary pressures hitting businesses.