UK Consumer Spending Plummets, What's Happening to Consumer Wallets?
UK retail sales fell sharply by 1.1% month-on-month in October, far worse than market expectations of a 0.2% decline. This data from the ONS signals that British consumers are starting to hold back on spending amidst the pressure of still-high living costs. Including fuel, annual retail sales rose only 0.2%, while economists had previously expected a rise of around 1.4%.
Excluding fuel, the situation wasn't much better. Core retail sales (ex-fuel) fell 1% month-on-month, deeper than the expected 0.5% decline. Annually, core retail sales rose only 1.2%, well below the 2.5% forecast. These figures indicate that although inflation is easing, consumers remain cautious and haven't fully relaxed their spending.
This data could add pressure on the government and the Bank of England, as weak household spending could potentially hold back economic growth. On the other hand, weakening consumption could argue to the market that the central bank doesn't need to keep interest rates so high for too long, but for now, the main message is clear: British consumers are still "tightening their belts." (asd)
Source: Newsmaker.id
