The Office for National Statistics has reported retail sales figures for November.
Retail sales volumes rose by 0.2% in November 2024 following a fall of 0.7% in October.
Non-food store sales volumes rose by 0.2%, Food rose by 0.5%. Clothing sales volumes fell by 2.6%, following a 3.5% fall in October.
Retail sales had been expected to rise by 0.5%.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “The UK consumer appears to be limping towards the finish line in 2024 – retail sales volumes came in slightly below expectations in November, with a good performance from food the only real highlight.
Online sales were weak across the board and there was little Christmas cheer on offer for clothing retailers. The 2.6% decline in clothing sales in November means clothing sales volumes are at their lowest in almost three years. With clothing often the first category consumers cut back on in difficult times, this is not a good omen.
The Autumn Budget leaves UK retailers between a rock and a hard place. The significant increase to national insurance contributions and the National Living Wage means they will have little option but to put up prices, and margins across the sector are likely to come under pressure.
With prices likely to rise and interest rates coming down more slowly than expected, the chance of a hit to UK consumer confidence in the coming months has significantly increased.”
