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Retail sales slide, as UK consumer confidence is hammered by inflation
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Retail sales slide, as UK consumer confidence is hammered by inflation
Rolling coverage of the latest economic and financial news, as retail sale across Great Britain slid by 0.9% last month
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Today's agenda
Retail sales in Great Britain fell by more than expected last month.

Retail sales volumes dropped by 0.9% in September 2023, after a rise of 0.4% in August 2023, figures from the Office for National Statistics show.

That is worse than expected – economists had forecast a 0.2% monthly fall.

On an annual basis, sales volumes were 1% lower than a year ago (although inflation meant that people actually spent 4.7% more, but got fewer items).

The squeeze on household budgets hit spending, while demand for autumn clothing was weak because of the warm weather in September.

The ONS said: "Non-food stores sales volumes fell by 1.9% in September 2023; retailers reported that the fall over the month was because of continuing cost of living pressures, alongside the unseasonably warm weather reducing sales of autumn-wear clothing."

UK consumer confidence has tumbled this month as households grow more nervous about the propects for their personal finances and the wider economy.

The latest gauge of consumer optimism from GfK dropped to a three-month low of -30 in October, down from September’s reading of -21.

Joe Staton, the client strategy director at GfK, says confidence has fallen because many households are struggling to meet bills, such as mortgage payments and rents.

“This sharp fall underlines that the cost of living crisis, and simply not having enough money to make ends meet, are still exerting acute pressure for many consumers.”

Staton added that there was “growing unease” among consumers, citing the … “fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East”.

The pound has dropped this morning, suggesting some traders think the fall in retail sales makes another increase in interest rates less likely.

Sterling is down half a cent against the US dollar at $1.2094.

The agenda
• 1.30pm BST: Canadian retail sales for September
• 2pm BST: Patrick Harker, president of the Federal Reserve Bank of Philadelphia, gives a speech

We’ll be tracking all the main events throughout the day ...
Opinion
Why own a newspaper in 2023? Ask the very rich men trying to buy the Telegraph
Why own a newspaper in 2023? Ask the very rich men trying to buy the Telegraph
 

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