All the day’s economic and financial news, as UK shoppers tighten their belts and cut back on food
- Latest: Retail sales weaker than expected
- Brits cut back after a summer spending blitz
- Biggest monthly drop in food sales in three years
- WTO’s Azevedo: Trade war would millions of jobs
- Shanghai composite hits four-year low
- Danske money-laundering: New CEO blocked by regulators
Ben Brettell, senior economist at Hargreaves Lansdown, says today’s UK retail sales figures are a concern:
Retail sales fell 0.8% in September as shoppers cut back on spending after a bumper summer. Food sales suffered their biggest monthly drop in three years.
The monthly data is notoriously volatile, but the year-on-year figure of 3.0% undershot economists’ forecasts of a 3.6% rise, and September’s drop dragged the three-month number down to 1.2%, the third fall in a row.
Philipp Gutzwiller, head of consumer at Lloyds Bank Commercial Banking, says shoppers cut back last month, after a summer splurge.
“After a summer of spending boosted by the long, hot weather, September saw shoppers tighten their belts to catch up.
“As a result, retailers have had to redouble their efforts, focusing on either steep discounts or creating the theatre that makes going shopping an experience consumers can actually enjoy.
#UK retail sales disappoint in September, falling 0.8% month of month, core also, and rising only 3% year on year, 3.2% core, well below expectations.
After strong readings during the bumper summer months in the UK Retail Sales it’s no surprise that the upside couldn’t be sustained. Monthly figure falls to -0.8% with Yearly at 3% vs 3.5% expected. $GBP off slightly, $GBPUSD 1.3108.