by Andy Bruce

LONDON (Reuters) – Retail sales in the United Kingdom unexpectedly fell month-on-month in October amid consumer disaffection on the shelves, official data released on Friday showed, highlighting new challenges for the economy.

These sales fell in volume by 0.3% last month after a contraction of 1.1% in September (revised from -0.9%), announced the National Statistics Office (ONS).

Economists polled by Reuters had forecast a rebound of 0.3%.

Over one year, the decline represents 2.7% compared to a decline of 1.5% forecast by the consensus. In September, it stood at -1.3% (revised from -1.0%).

Overall, these figures reflect the increasingly bleak outlook for the UK economy, marked by stagnant gross domestic product (GDP) and strong price pressures, which are fading but at a slow pace.

Investors believe that these elements will lead the Bank of England (BoE) to lower its interest rates in 2024.

“Retailers suggested that the cost of living, lower footfall and wet weather in the second half of the month contributed to this decline,” the ONS said.

The figures also show a slight downward revision in retail sales for the third quarter.

Given the narrow margin that allowed Britain to narrowly avoid an economic contraction in the third quarter last week, data released on Friday suggests that GDP will also be revised downwards and should even show a contraction.

Distributors nevertheless hope that the crucial Christmas sales period will take place under better conditions.

Despite recent macroeconomic data and a series of consumer surveys, major retailers including Tesco, Sainsbury’s, Next, Primark and Marks & Spencer have been confident about their prospects heading into the holiday season. year.

(With contributions from James Davey; Claude Chendjou, edited by Kate Entringer)

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