Britain’s Retail Sales tumbles to its lowest point in seven months in October, threatening consumers in this coming Christmas season.
According to the British Retail Consortium, the figures for sales declined by at least 1 percent on a like-for-like basis and actually are an increase of 0.2 percent in overall tenures. Additionally, a separate report by the Barclaycard revealed that the annual growth in household spending weakened by to 2.4 percent in the preceding month from 3 percent in September. This has been the weakest in more than a year of progress.
In October, the Real Income of UK Workers also experienced a decline due to the country’s fast inflation rate and slow wage growth. With this, the UK’s Retail Stores had fewer customers than expected which consequently affected the data of the said sector. According to Chief Executive Officer Simon Wolfson, the consumer behavior is subdued as retail stocks have underperformed in the broader market generally.
The Grosvenor Shopping Centre in Chester, England
Furthermore, Governor Mark Carney of Bank of England stated last week that despite the fact household finances had faced difficulties this year, “the worst of that real-income squeeze is ending.” Carney also expects a rebound in wage worth aside from the inflation to peak this month.
“Declining business and consumer confidence is undoubtedly affecting demand in the new car market but this is being compounded by confusion over government policy on diesel. Consumers need urgent reassurance that the latest, low-emission diesel cars on sale will not face any bans, charges or other restrictions, anywhere in the UK.” Chie Executive, Mike Hawes told reports.
Also, the recent figures on households indicated spending reluctance on non-essentials, provided that the high level of that Brexit vagueness for the viewpoint. According to the BRC, in the recent three months which ended in October, nominal food sales added 2.4 percent on a like-for-like basis, sustained by inflation, while non-food sales declined 0.4 percent.
“Considering the intrinsic link between consumer spending and economic growth, the chancellor should reflect on this disappointing state of play and deliver a budget that allays the risks of a further slowdown in consumer spending, by keeping down the cost of living. In other words, a shoppers’ budget,” BRC chief executive, Helen Dickinson told reports.
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