UK retail sales rise slightly in November amid concern over golden quarter

UK supermarkets have provided a boost to retail sales in November, despite a significant decline in clothing store revenue. The Office for National Statistics (ONS) reported a modest 0.2% increase in retail sales last month, a recovery from October's 0.7% decrease.

However, the uplift fell short of economists' forecasts and raises concerns about a challenging "golden quarter" in the lead-up to Christmas, exacerbated by tax increases in Rachel Reeves’ Autumn Budget, as reported by City AM.

The ONS highlighted a 0.3% rise in retail sales over the quarter ending in November.

Year-on-year, sales were up 1.9%, but the final quarter of 2023 is shaping up to be one of the least impressive in over five years for UK retailers.

"Retail sales increased slightly in November following last month’s fall. For the first time in three months there was a boost for food store sales, particularly supermarkets," commented Hannah Finselbach, senior statistician at the ONS. "It was also a good month for household goods retailers, most notably furniture shops. Clothing store sales dipped sharply again, as retailers reported tough trading conditions."

Neil Birrell, Chief Investment Officer at Premier Miton Investors, remarked that the figures indicate consumers are "feeling the pinch in a sluggish economy."

The Bank of England's decision to maintain interest rates amidst persistent inflation is raising concerns about growth prospects as the new year approaches. "With the Bank of England keeping inter