UK retail sales post first year on year fall since 2013
UK retail sales fell for the first time since March 2013 in the 12 months to October, according to official data, but the figures were still stronger than economists had forecast.
The quantity of goods excluding auto fuel bought by British consumers fell 0.3 per cent compared to the same month in 2016, according to data from the the Office for National Statistics. While it was the first drop in more than four years, it was slimmer than the 0.3 per cent fall forecast by economists in a Reuters poll.
The month on month statistics look brighter: total volumes rose 0.3 per cent, or 0.1 per cent excluding the volatile automotive fuel component. That beat expectations for a rise of 0.1 per cent and no change, respectively.
“We are continuing to see an underlying picture of steady growth in retail sales, although this October suffered in comparison with a very strong October in 2016,” said ONS senior statistician Kate Davies.
Ms Davies said month on month growth was “particularly strong” in second-hand goods, which includes auction houses and antique dealers.
The mixed reading comes as quickly rising prices have crimped disposable incomes. The ONS said on Thursday that average prices at food stores were up 3.5 per cent from the previous year. Growth was slower for non-food stores, which clocked in growth of 2.5 per cent.
“The squeeze on consumers remained appreciable,” said Howard Archer, economist at the EY Item Club, who added the monthly gain was “uninspiring”.