UK Retail Sales Fall For First Time In 5 Months; Consumer Sentiment Weakens

(RTTNews) - UK retail sales declined for the first time in five months in October as consumers delayed their spending in the lead up to Black Friday, the Office for National Statistics said on Friday.

British consumer confidence deteriorated in November ahead of the upcoming autumn budget, a private survey revealed.

Retail sales fell 1.1 percent on a monthly basis in October, in contrast to the 0.7 percent increase in September. This was the first fall in five months and worse than economists' forecast of 0.1 percent drop. Excluding automotive fuel, retail sales posted a monthly drop of 1.0 percent after a 0.7 percent rise in September. Sales were expected to fall 0.2 percent.

Food store sales were down 1.1 percent and non-food store sales decreased 0.6 percent in October. Automotive fuel sales registered a 2.4 percent decrease.

The consumer sentiment index dropped two points to -19 in November, a survey jointly published by GfK and the Nuremberg Institute for Market Decisions showed Friday.

"This is a bleak set of results as we head towards next week's Budget," said Neil Bellamy, Consumer Insights Director at GfK.

"A fall across all five measures suggests the public is bracing for difficult news, with little in the current climate to lift expectations," Bellamy added.

The past personal financial situation index as well as future personal financial situation indicator lost two points each. The index for future general economic conditions also slid two points.

The assessment of the past general economic situation edged down one point. The major purchase index posted the biggest fall of three points.