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UK retail sales hit by mild autumn | |
(35 minutes later) | |
Retail sales fell by a worse-than-expected 0.5% in October, after a mild autumn hit sales of winter clothes. | |
Sales at household goods stores fell 3% following a particularly strong August and September, the Office for National Statistics (ONS) said. | |
For the three months to October, retail sales rose 0.4% - a considerable slowdown from the 2.3% increase recorded for the three months to July. | For the three months to October, retail sales rose 0.4% - a considerable slowdown from the 2.3% increase recorded for the three months to July. |
Analysts said October's fall suggested shoppers were cutting back spending. | |
Samuel Tombs at Pantheon Macroeconomics said the drop was the "first real sign that consumers are tightening their purse strings due to uncertainty about Brexit". | |
Non-food sales fell 1.3%, with a 1% decline in clothing sales, which he said could not be blamed on the weather. | |
"Consumers' confidence already has weakened in recent months due to concerns about the economic outlook and we doubt households are feeling any surer that a no-deal Brexit will be avoided after this week's political turbulence," Mr Tombs said. | |
"Unless the government miraculously manages to force the current withdrawal agreement through parliament soon, growth in consumers' spending will weaken markedly in the fourth quarter." | |
Thomas Pugh at Capital Economics said some of October's weakness may reflect consumers delaying spending ahead of "Black Friday" discounts this month. | |
"High oil prices also weighed on the volume of fuel sold. As such, we suspect that there could be a rebound in sales volumes in November as oil prices have fallen sharply and if Black Friday sales pick up," he added. |