MANCHESTER (Reuters) -British retail sales fell by a more than expected 1.1% in October, official figures showed on Friday.
Economists polled by Reuters had expected sales to be flat compared with the previous month.
Earlier on Friday Britain’s longest-running consumer survey, from GfK, fell in November ahead of finance minister Rachel Reeves’ budget, due next Wednesday.
Reeves is expected to need to raise 20-30 billion pounds ($26 billion-$39 billion) through higher taxes due to an expected growth downgrade from the government’s budget watchdog as well as higher borrowing costs and an inability to pass planned welfare cuts through parliament.
Overall consumer spending has been subdued due to a continued high savings rate, which economists say may reflect 2022’s surge in inflation, a more recent weakening in the jobs market and concerns about tax rises in November’s budget.
Recent updates from major retailers have expressed nervousness about the impact of the upcoming budget on consumer sentiment, particularly for more discretionary purchases. However, supermarket Sainsbury’s and food and clothing retailer Marks & Spencer were both upbeat on Christmas trading prospects.
(Reporting by Andy Bruce; editing by Sarah Young)
