UK retail sales dropped in October following three months of growth, according to the Office for National Statistics (ONS).
Uncertainty around the budget and unseasonably warm weather meant consumers spent less than expected last month, the official figures showed.
Sales were down 0.7% for the month, after nudging up 0.1% in September while non-food store revenues dropped to 1.4% for the period, despite rising 2.3% the month prior.
Following the downward trend, sales at clothing stores were down 3.1% over the month as October temperatures remained high.
Meanwhile food stores revenues saw a marginal drop of 0.6%, as online sales also fell 1.2%, with the highest drop experienced within non-food retailers.
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ONS senior statistician Hannah Finselbach said: “When we look at the wider trend, retail sales are increasing across the three-month and annual periods, although they remain below pre-pandemic levels.”
She explained that October’s fall “was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget”.
PwC leader of industry for consumer markets Lisa Hooker added: “It’s clear that falling consumer sentiment and uncertainty ahead of the budget at the end of last month put a dampener on shoppers’ plans, with unfortunate timing at the start of retail’s critical golden quarter.
“With shoppers also telling us that they had started their Christmas shopping early, this does not bode well for the upcoming festive season.”
“However, what gives us confidence that there could be light at the end of the tunnel is that with no major overnight personal tax rises the budget largely did not affect consumer spending power in the short term.”
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