British Retail Consortium (BRC) total sales in October +0.6% y/y, weakest growth since July
- prior (September) +2.0%
- like-for-like sales +0.3% y/y (prior +1.7%)
Barclaycard UK October consumer spending +0.7% y/y, also the weakest growth since July
- prior +1.2%
- prior +2.0%
From the reports, in brief:
- Factors like budget uncertainty, delayed purchases until Black Friday, and a later half-term break impacted sales.
- The October 30 budget mostly targeted businesses for tax hikes, sparing many households from increased wage taxes, which may boost consumer confidence.
- A 10% increase in the household energy price cap added pressure on consumers.
- Essential spending dropped 2.2%, led by supermarkets, while non-essential spending rose 2.1%, driven by concert ticket sales.
- Despite earlier concerns, easing inflation and improved confidence suggest potential for spending growth.
Note, the Bank of England meets on Thursday
- is expected to reduce borrowing costs, eyeing falling inflationary pressures