Brits ‘hurting’ as Reeves ‘runs confidence in economy into the ground’ | Personal Finance | Finance
Rachel Reeves has been accused of running confidence in the UK economy “into the ground” as official figures show retail sales dipped unexpectedly in November. The stats issued on Friday show caution prevailed among shoppers and Black Friday discounts failed to boost spending in the run-up to Christmas.
The Office for National Statistics (ONS) stated that the total volume of retail sales is estimated to have decreased by 0.1% in November. Jonathan Moyes, Head of Investment Research at investment service Wealth Club, said in response: “This is another grim reading on the health of the UK economy.
“The credit for these numbers will surely go to the Chancellor, who spent much of the month running what little confidence the UK consumer had into the ground.”
He said consumers are “hurting” and higher taxes will only make matters worse, potentially hampering economic growth and risking an economic doom loop.
Most analysts had been expecting a 0.4% increase in retail sales for November, but instead supermarket sales fell for the fourth month in a row – 0.5% in November. Retailers reported a lower number of people visiting shops.
The ONS also stated that the effect of Black Friday, with discounts typically lasting well beyond the specific end-of-November date, appeared to be slightly weaker this year than usual.
It was a disappointing month for non-store retailers, which include online shops and sellers such as street stalls and markets. Sales here dropped by 2.9%.
The data showed department stores’ sales volumes jumped by 2.3% in November. Some retailers attributed this to a longer period of Black Friday discounting.
A separate study from market research company GfK showed consumer confidence edging up ahead of Christmas.
However, GfK’s new figures indicate that confidence remains subdued in the face of cost-of-living pressures.
Its long-running Consumer Confidence Index improved by two points to minus 17 for December.
The research showed that all five of the survey’s measures increased for the month, bouncing back from a weak November, which had been impacted by pre-Budget caution.
Neil Bellamy, GfK’s Consumer Insights Director, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence.
“This is a surprise finding for the UK high street because it contrasts with the Black Friday sales slump we reported on earlier this month.”
He added: “UK households still face cost-of-living pressures, despite the recent softening in inflation, along with rising economic uncertainty, and those conditions result in weaker consumer confidence.”
