UK Retail Sales Slump As Confidence Falls

UK Retail Sales Slump As Confidence Falls

Friday 20th October 2023 – 07:55 (BST)

British retail sales experienced a surprising and substantial downturn in September, with clothing and household goods bearing the brunt of the decline. Unseasonably warm weather and financial constraints contributed to a 0.9% drop in the quantity of goods purchased in Great Britain, as reported by the Office for National Statistics (ONS) on Friday. This contraction far exceeded the economists’ consensus, which had predicted a more modest 0.2% decrease.

Non-food retailers suffered the most, with sales volumes plummeting by 1.9% during the same period. Retailers attributed this significant decline to the persistent cost-of-living pressures that consumers face, coupled with the warmth of the weather, which dampened demand for autumn clothing.

These unforeseen setbacks in retail sales signal a challenging environment for the British high street. While economists and retailers are hoping for a turnaround in the coming months, the continued economic pressures and unpredictable climate are casting a shadow over the industry’s recovery prospects.

The news follows data yesterday that showed UK consumer confidence plunged at its fastest rate since the beginning of the pandemic during October, amid higher mortgage and rental costs. This placed further pressure on GBP which has seen its value fall by 2% during the latest weeks trading with key levels of resistance about to be tested.