Sector movers: Retailers in the red as consumer spending worries worsen
(ShareCast News) - Retailers were the big drag on the FTSE 350 today as survey data showed households continued to show caution on spending.
UK households spent less for the second month in a row in June, Visa said in its monthly consumer spending index, dropping to its lowest quarterly level for three and a half years.
There was a 5.8% decline for transport & communication, a 3.4% fall for household goods, a first monthly drop for recreation & culture in four years and and a much smaller dip for clothing & footwear than than the previous month's five-year plunge.
Next and Marks & Spencer were among the larger players in the red, while the worse fall was seen at Dunelm, given all three are exposed to the household goods space.
M&S also has first-quarter results out on Tuesday. Analysts at Credit Suisse felt trading "may not look all that bad" in the quarter thanks to Easter's timing and easier comparatives, but warned that "over the next 12 months the environment will remain challenging for M&S in the UK with increased competition in both clothing and food and softer demand".
Takeaway food website Just Eat bucked the trend, however, as some other research emerged. Data from the Centre for Economics and Business Research predicted that annual spending on takeaways could top £11bn within four years.
Top performing sectors so far today
Forestry & Paper 21,790.46 +1.15%
Beverages 18,398.07 +1.10%
Banks 4,525.70 +1.04%
Personal Goods 36,376.63 +1.00%
Aerospace and Defence 5,341.72 +0.82%
Bottom performing sectors so far today
General Retailers 2,434.69 -0.60%
Automobiles & Parts 7,624.43 -0.43%
Pharmaceuticals & Biotechnology 13,987.28 -0.43%
Real Estate Investment & Services 2,709.19 -0.36%
Gas, Water & Multiutilities 5,799.48 -0.33%