Retail sales in UK see 0.7 percent decline last month, sharper than expectations
Date
11/24/2024 3:28:42 AM
(MENAFN) Retail sales in the UK experienced a sharper-than-expected decline in October, falling by 0.7 percent month-on-month, according to official data released on Friday. This performance was worse than the market forecast, which had predicted a smaller drop of 0.3 percent. The decline follows a revised increase of just 0.1 percent in September, indicating a slowdown in retail activity.
Non-food store sales were a significant driver of the overall downturn, dropping by 1.4 percent after a 2.3 percent increase in September. The sharpest decline was seen in clothing stores, where sales fell by 3.1 percent. This trend reflects broader challenges in the retail sector, including reduced consumer confidence and concerns about economic stability, especially in light of the recent Budget announcement, according to the UK's statistical office.
Online sales also faced a slowdown, dipping by 1.2 percent month-on-month in October. This mirrors the broader difficulties faced by the retail industry, as many consumers seem to be pulling back on spending due to economic uncertainties. The decrease in online sales follows a period of growth during the pandemic, when e-commerce saw a significant boost.
Despite the monthly decline, annual retail sales volumes in October showed a 2.4 percent increase, though this marks a slowdown from the 3.2 percent growth recorded in September. The annual growth figure indicates that, while consumer spending has softened, the retail sector remains in a relatively positive position compared to the same period last year. However, the ongoing challenges, including inflation and economic concerns, may continue to affect consumer behavior in the near future.
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