The estimated reading today should show a slight bounce in UK retail sales in November, with activity up 0.4% after the 0.3% drop in October. But as we have been seeing in recent months, the actual data have been disappointing expectations. UK households are continuing to feel the pinch amid high inflation and higher interest rates.
UK retail sales month-on-month performance in 2H 2023
The hefty divergence between UK retail sales volumes and values continues to underscore the squeeze on UK consumers at the moment as well.
And even if we do see any bounce in activity in November as estimated, the latest retail sales climate report by CBI here tells that December is looking rather gloomy. So, that doesn’t paint much of an optimistic picture going into the turn of the year for the UK economy.