Last month, British shops reported a little increase in sales, but it was not enough to make up for September’s decline.
According to estimates from the Office of National Statistics, retail sales volumes increased by 0.6% in October.
This follows a decrease of 1.5% in the preceding month, which was impacted by the additional bank holiday for the Queen’s burial.
Despite a minor increase last month, the ONS reported a decline in sales volume in the three months leading up to October, compared to the preceding three months.
This is the steepest decline since March 2021, when Covid limitations went into effect, and continues a declining trend observed since last summer.
Despite a modest increase in November, separate statistics released today revealed that a measure of consumer confidence remained near its all-time low.
During this prolonged and difficult cost-of-living crisis, experts observed that many Britons were “struggling to manage their finances.”
The ONS retail sales numbers for October showed improvements in all of the major sectors except food retailers, where sales volumes decreased by 1% and were 4.1% below pre-Covid levels.
In recent months, supermarkets have reported a fall in sales volume due to the rising cost of living and food costs, according to the ONS.
In the month of October, non-food shop sales volumes increased by 1.1% and were 1.7% higher than pre-Covid levels.
In October, fuel sales increased by 3.3%, reversing September’s decline of 1.2%, although they remained 6.9% below pre-Covid levels.
The percentage of sales that occurred online was 26,1%, a figure that has been rather stable since May.
Director of economic statistics at the ONS, Darren Morgan, stated, “Retail sales increased in October, although this is likely a rebound effect after sluggish sales in September, when many stores closed or functioned differently due to the extra bank holiday for the Queen’s burial.”
In the big picture, retail sales have been declining since the summer of 2021 and are now lower than they were prior to the pandemic.
The GfK index for consumer confidence rose three points from October to November, reaching -44.
All indices of consumer confidence increased in November compared to October, but this was deemed “little more than a collective sigh of relief” after Liz Truss resigned as prime minister in the wake of the economic upheaval that surrounded her brief premiership.
Director of client strategy at GfK, Joe Staton, stated, ‘Despite the three-point increase in confidence to -44 this month, and improvements in other indicators reflecting the financial and economic mood of the nation, November’s Overall Index Score remains near a record low.
‘This month’s uptick is likely little more than a collective sigh of relief as a new prime minister assumes power following September’s frightening budgetary antics.
This is not the conclusion of the start. External variables have remained largely unchanged, and the UK inflation rate has recently reached a new peak, so more bad news is inevitable.
In the midst of this extended and excruciating cost-of-living crisis, there is a dearth of good news as many people battle to manage their finances.