Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Retail sales hit lowest level since 2021 lockdowns

by November 20, 2023
November 20, 2023
Retail sales hit lowest level since 2021 lockdowns

Shoppers bought less fuel and food in October as they were hit by rising living costs and poor weather, according to official figures.

The volume of products sold last month fell by 0.3% to the lowest level since February 2021 when large parts of the UK were in Covid lockdowns.

Retail sales had widely been forecast to grow in October.

The worse-than-expected data emerged as recent figures showed the UK economy was failing to grow.

Gross domestic product – the amount of the goods and services produced by the UK – flatlined between July and September and the Bank of England expects only subdued growth until 2025.

Next week, Chancellor Jeremy Hunt will make his Autumn Statement when he will set out the government’s tax and spending plans and his strategy to grow the economy.

Commenting on the latest data, the Office for National Statistics said petrol and diesel sales may have been “affected by increasing fuel prices”.

Demand for other goods was also lower, said the ONS.

“It was another poor month for household goods and clothes stores with these retailers reporting that cost of living pressures, reduced footfall and poor weather hit them hard,” said Heather Bovill, deputy director for survey and economic indicators at the ONS.

During October, Storm Babet hit much of the UK resulting in “exceptional rainfall”, according to the Met Office.

Fuel sales fell by 2% between September and Octobers with retailers reporting that “consumers were spending their money more cautiously, alongside the impact of bad weather”.

Supermarkets said shoppers were buying more food, but specialist stores, such as butchers and bakers, recorded a decline. Sales of alcohol and tobacco also dropped, down 4.2% and 10.4%, respectively.

Retailers said shoppers “were buying cheaper products and prioritising important items”.

The retail sector is heading into its most important trading period which includes Christmas.

Lisa Hooker, leader of industry for consumer markets at PwC, said: “We know from earlier in the year that in tough times consumers prioritise special events and family occasions, so retailers will be hoping that consumers are keeping their powder dry for a last minute Christmas spending surge come December.”

Compared to last October, retail sales volumes were 2.7% lower.

The ONS also revised down its reading of retail sales in September to a drop of 1.1% after initially estimating a decline of 0.9%.

Recent figures showed that inflation – which measures the rate at which prices are rising – fell sharply to 4.6% in the year to October from 6.7%.It follows a long succession of interest rate rises by the Bank of England.

While raising rates can reduce inflation, it also affects economic growth by making it more expensive for consumers and businesses to borrow money.

Aled Patchett, head of retail and consumer goods at Lloyds Bank, said: “Another dip in sales suggests rising household costs remain at the forefront of consumers’ minds, despite headline inflation easing in recent months.

“The rising cost of living remains a drag on consumers’ discretionary incomes. Households continue to prioritise essential spending, particularly as falling winter temperatures push energy use up.”

Read more:
Retail sales hit lowest level since 2021 lockdowns

0
FacebookTwitterGoogle +Pinterest
previous post
Rachel Reeves set to reveal British infrastructure council for Labour
next post
Jeremy Hunt rules out any tax cut which will fuel inflation in autumn statement

You may also like

New funding package supports Yorkshire business in developing...

October 4, 2023

UK’s broadband firms set for £1.7bn windfall with...

September 7, 2022

Wilko plans to cut 400 jobs as part...

February 16, 2023

SME leaders bullish about prospects as majority expect...

August 16, 2023

HSBC and Lloyd’s of London show differing opinions...

February 27, 2023

TikTok rides out wider advertising slowdown

December 6, 2022

Lord Sugar ‘tried to declare himself non-UK resident...

September 11, 2023

Radical land tax proposal gains traction with support...

August 27, 2024

A Conversation with Hosam Al-Baderi: Pioneering the Future...

April 22, 2025

Useful Tips to Clean Memory Foam Mattress &...

January 19, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Your Weekly Stock Market Snapshot: What It Means for Your Investments

      June 6, 2025
    • Getting It Half-Baked: The Real Cause of Cannabis Market Failures

      June 6, 2025
    • I Shot the Tariff (But I Swear It Was in Self-Defense)

      June 6, 2025
    • Mike Johnson says he hopes Trump, Musk ‘reconcile’ amid ongoing feud

      June 6, 2025
    • Trump signs new executive orders intended to make flying cars a reality, slash flight times

      June 6, 2025
    • WATCH: Republicans rally behind Trump, continue to support Musk amid ‘big, beautiful’ brawl

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,552)
    • Stocks (3,133)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved