Retail sales fell by 0.7% in October, as shoppers held off on spending ahead of the Budget, according to official figures. Clothing stores had a particularly tough month, with sales down by 3.1%, partly due to milder weather delaying purchases of winter clothing.
The Office for National Statistics (ONS) pointed out that despite this decline, sales volumes had risen by 0.8% in the August to October period compared to the previous three months. Retailers, particularly in clothing, reported that uncertainty over potential tax increases led to more cautious consumer behavior.
The drop in retail sales adds to a series of disappointing economic data, including higher-than-expected government borrowing and rising inflation. Retailers have also voiced concerns about the impact of tax hikes announced in the recent Budget, with some predicting job losses and higher prices in the sector.
Looking ahead, experts suggest that confidence could improve with the Budget now behind and a possible reduction in interest rates, offering a clearer path for holiday shopping.