UK Retail Sales Drop Sharply in October Ahead of Budget

Sales volumes fell 0.7% as consumer spending slowed, driven by pre-Budget uncertainty and unseasonably warm weather.

The Office for National Statistics (ONS) reported a 0.7% decline in retail sales volumes for October, worse than the 0.3% drop forecasted by economists.
Clothing stores experienced the largest decline, with sales falling 3.1%, partly attributed to mild weather delaying purchases of winter clothing.
Retailers noted widespread hesitation among consumers to spend ahead of Rachel Reeves's Budget announcement, citing low confidence and economic uncertainty.
A coalition of over 70 major UK retailers, including Tesco, Sainsbury's, and Marks & Spencer, warned that Budget policies, such as National Insurance hikes, could lead to significant job losses and business closures.
Despite the October decline, the ONS highlighted that retail sales have shown growth over the broader three-month and annual periods, though they remain below pre-pandemic levels.