Market - - Nov 16,2017
As noted by the Office for National Statistics (ONS), U.K. retail sales dipped by 0.3% in October as compared to the value a year earlier.
The United Kingdom is experiencing rising food inflation along with uncertainties clouding the future outlook for the U.K. economy. All of this has majorly impacted the retail sales which dipped for the first time highlighting an annual fall since March 2013.
Food prices marked 3.5% higher than a year earlier, assisted in pushing the volume of goods purchased in shops and online lower by 0.3% since October 2016.
According to chief U.K. economist at Pantheon Macroeconomics, Samuel Tombs, the warm weather pointed to the fact that people resisted buying new winter clothing. He mentioned that sales were down due to “some one-off factors”. He further added, “Retail sales volumes recovered only partially from September’s 0.7% month-on-month drop”, this underlines the fact that consumers have implemented a watchful mindset.
Kate Davies, a statistician at Office for National Statistics (ONS) said, the authorities are continuing to check an underlying picture associated to sound growth in retail sales, with the month of October struggling as compared to “a very strong October in 2016."
Furthermore, a recent survey by Visa revealed that consumer spending contracted by 2% in October, the quickest year-on-year decline recorded in the past four years and the fifth monthly drop in six months. Moreover, the report also mentioned that this drop was motivated by a 5% decline in payments linked to the high street.
There are also traces about the anxiety concerned with the economic outlook, which is apparent in fresh consumer confidence surveys. As a matter of fact, it is believed that it has discouraged shoppers from purchasing heavy budgeted items.