British consumers reduced their spending last month, according to official data released Friday, confirming signs of a broader economic slowdown ahead of Chancellor Rachel Reeves' budget presentation. The figures contradict market expectations and underscore a cautious mood among households.
According to the Office for National Statistics (ONS), retail sales volumes fell by 0,1% in November compared to October. This decline occurred despite Black Friday promotions, the impact of which proved less pronounced than in previous years, even though economists surveyed by Reuters had anticipated a 0,4% increase.
The contraction follows an even sharper decline in October, when sales fell by 0,9%, a figure slightly revised downwards from the initial estimate of 1,1%. This marks a second consecutive month of decline, a signal considered worrying for the retail sector.
Supermarkets suffered particularly, registering a decline in sales for the fourth consecutive month. Jewelers also noted a weakening of demand for gold, traditionally sought after in the run-up to the holiday season, illustrating continued consumer restraint.
"A second consecutive month of declining retail sales will be a major disappointment for retailers, especially as these figures include Black Friday and early Christmas shopping," said Oliver Vernon-Harcourt, head of retail at Deloitte, highlighting the industry's disappointment with these results.
These figures reinforce concerns about the dynamics of the British economy, as inflation, the cost of living, and budget uncertainty weigh on household confidence. They also pose an additional challenge to the government, which is called upon to stimulate growth while keeping public finances under control.
