UK Retail Sales Rise Less Than Expected Amid Consumer Caution
UK retail sales grew more slowly than expected in November as cost-of-living pressures weighed on consumer sentiment in the wake of the Labour government’s first budget.
The volume of goods sold in stores and online rose 0.2% last month, due in part to a decline in clothing sales, according to figures published by the Office for National Statistics. Economists had expected a 0.5% increase.
“Retail sales increased slightly in November following last month’s fall,” ONS Senior Statistician Hannah Finselbach said. “Clothing store sales dipped sharply once again, as retailers reported tough trading conditions.”
The figures spell trouble ahead for retailers during the crucial Christmas period, as well as for Labour’s growth ambitions more broadly, with consumers making up two-thirds of the economy. While households are seeing growing real incomes, cost-of-living pressures and economic uncertainty continue to bite.
Bank of England Won’t Let Data ‘Noise’ Knock It From Easing Path
This caps a week of data releases suggesting the UK economy is edging toward ‘stagflation’ — a low growth, high inflation environment. Inflation cemented its rise above the Bank of England’s 2% target due to rising goods prices, while wage growth came in hotter than expected.
The BOE also downgraded its growth outlook as it now expects the economy flatten in the final quarter of the year.
Source : Bloomberg
