UK Retail Sales Disappoint Amid Cost of Living Pressures

Families cut back on gift buying, while spending on entertainment and travel increases.

Retail sales in the UK grew by only 1.7% in December, a disappointing figure attributed to families 'battening down the hatches' amid cost of living pressures.
Despite sales, retailers reported disappointing sales of typical gift items like clothes, jewellery and gadgets, with spending on clothing falling by 2% in December.
Consumer card spending grew by only 2.3% in December, well below November's growth of 2.9% and lower than the current annual inflation rate of 3.9%, suggesting sales volumes fell.
Spending on entertainment and travel soared by 12.3% and 14.1% respectively as consumers booked experiences and getaways for 2024.
Restaurants are also suffering, with total card spending in restaurants falling by 8.8% and the number of transactions dropping by 13.1%.