Business · Economy · 2 hrs ago

UK retail sales growth slows as shoppers curb spending before Budget

UK retail sales growth slows as shoppers curb spending before Budget

UK retail sales rose 1.3% in September compared with a year earlier, slower than the 12-month average of 1.5%.

The figures from the British Retail Consortium and KPMG show shoppers were cautious before the Budget, amid expectations of higher household bills and taxes.

Food sales grew by 2.5%, while non-food sales were almost flat, rising 0.3%.

Health and beauty had its strongest month of the year so far, but clothing and footwear sales were weak as warm weather delayed demand for autumn and winter clothes.

Separate Barclays figures showed card spending rose 2% year on year, and 68% of people surveyed were concerned about the Budget’s effect on their household finances.

The figures suggest shoppers are choosing some purchases while putting off others, creating a challenge for retailers as the Black Friday period approaches.

The Budget is due on October 28, and retailers are watching for decisions that could affect prices, investment and jobs.

What people are saying

With confidence fragile, this Budget is a critical test. Retailers will do everything they can to protect value for customers, but Government must play its part.
Helen DickinsonBRC chief executivevia Independent
September’s retail sales figures point to an increasingly selective consumer.
Linda EllettUK head of consumer, retail and leisure at KPMGvia Independent
The caution felt by consumers ahead of the Budget mirrors what we have also seen in our surveys of UK businesses.
Jack Meaningchief UK economist at Barclaysvia Independent

Sources

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