Unlucky Retail Numbers: November Trumps October but Still Falters
According to the Office for National Statistics, retail sales in the UK inch up by 0.2% in November, a bright spot after the 0.7% slump in October.
Breakdown by Category
- Non‑food stores: +0.2%
- Food: +0.5%
- Clothing: -2.6% (the biggest drop so far)
The expected rise was a clean 0.5%, so the overall number falls short of what analysts had been hoping for.
Industry Perspective
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, summed it up: “The UK consumer looks like they’re limping all the way to the finish line in 2024. Retail sales were a tad below what was predicted, with food being the sole bright spot.”
Online sales lagged everywhere, and it’s especially grim for clothing. A 2.6% decline indicates the category is at its lowest point in almost three years—usually the first line of defence for wallet‑tight shoppers during tough times. Let’s just say the mood isn’t great.
Budget Impact & Future Outlook
The Autumn Budget has retailers in a tight spot. Costs bump up with higher national insurance contributions and the National Living Wage, forcing price hikes. As margins tighten, consumers may feel the pinch.
With price climbs and rates dropping at a slower pace than expected, the probability of a dent in UK consumer confidence is rising faster in the coming months.
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