U.K. retail sales unexpectedly fell in November; down 0.1% on the month
Investing.com - U.K. retail sales unexpectedly fell in November, adding to the previous month’s weakness, awith the country’s consumers continuing to lack confidence heading into the crucial holiday period.
Retail sales dropped by 0.1% on the month in November, according to data released by the Office of National Statistics data earlier Friday, continuing to show weakness after the previous month’s 0.9% slump, which was revised a previously recorded drop of 1.1%.
Economists had predicted that retail sales, which mostly reflect goods and are not adjusted for inflation, would rise by 0.3% on a monthly basis.
Retail sales gained by 0.6% on an annual basis, having increased by 0.6% in October.
This drop occurred the same month as Chancellor Rachel Reeves delivered her Autumn budget, which was expected to deliver hefty tax increases to fill a fiscal black hole.
However, overall, the budget is set to increase Britain’s tax burden by £26 billion ($35 billion) a year, less than the £40 billion increase announced in 2024, and most of that will not take effect this year or next.
Data released earlier Friday showed that British consumer confidence edged up in December to its joint-highest level this year, according to a monthly survey.
The GfK consumer confidence index, Britain’s longest-running such measure, rose to -17 from -19 in November, matching levels seen in October and August.
The index was last higher in August 2024, just after the Labour government took office.
"Consumers resemble a family on a festive winter hike, crossing a boggy field - plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off," said Neil Bellamy, consumer insights director at GfK.
Also helping recent sentiment was the decision of the Bank of England to cut its benchmark Bank Rate to 3.75 from 4.0% at its meeting on Thursday.
