Consumers Spend Less, UK Retail Sales Fall!


 UK retail sales unexpectedly fell in November, signaling the pressure many households are feeling as the cost-of-living crisis hits their spending.

Most recently, the Office for National Statistics (ONS) reported total retail sales fell by 0.4% last month from a 0.9% increase recorded in October.

The recorded figure also missed expectations for a 0.3% increase, while on an annual basis it decreased by 5.9%.

When compared to the reading recorded in February 2020, which was before the Covid-19 pandemic hit, it decreased by 0.7%.

Even so, this decline is in line with other signs that consumers are struggling with the current high cost of living.

Among the contributors to this decline is the fall in sales of non-food stores such as used goods, especially auction houses and computer and fuel stores.

In contrast, sales at food stores rose 0.9% supported by early household spending on Christmas preparations.

The pound's reaction showed a decline following the release of the data with investors now turning their attention to the release of the UK services and manufacturing PMI report at 5.30pm this afternoon.