UK retail sales in October declined after three months of growth, influenced by budgetary uncertainties.
- Retail sales fell by 0.7% in October, reversing a modest rise seen in September, according to the ONS.
- Non-food stores experienced a significant downturn, with revenues decreasing by 1.4% compared to the previous month.
- Clothing stores were notably affected, with a drop of 3.1% in sales due to warmer-than-expected weather.
- Amidst these trends, online sales faced challenges, decreasing by 1.2% during October.
The Office for National Statistics has reported a decrease in UK retail sales for October, marking a 0.7% decline following a minor increase in September. This shift comes amidst growing concerns surrounding budgetary decisions which appear to have affected consumer spending behaviours.
Non-food retail outlets have witnessed a notable reduction in sales, with a decrease of 1.4% in October. This contrasts with the 2.3% rise seen in the preceding month. Such a drop indicates a cautious consumer approach, potentially attributed to economic uncertainties and weather variations.
Warm weather in October has been attributed to a 3.1% drop in clothing store sales. As consumers anticipated budget announcements, spending on apparel decreased significantly, contributing to the overall reduction in retail sales.
Food store revenues remained relatively stable, experiencing only a slight decrease of 0.6%. During the same period, online sales also diminished, registering a 1.2% fall, marking a challenging environment for non-food retailers.
Hannah Finselbach, a senior statistician at the ONS, noted that while sales remain higher over three-month and annual perspectives than during pre-pandemic times, the current dip is primarily driven by uncertainties in budget deliberations. Echoing these sentiments, Lisa Hooker, leader for consumer markets at PwC, highlighted the impact of early Christmas shopping on consumer spending behaviours.
October’s retail downturn underscores the influence of budget uncertainty and weather on consumer spending.
