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| Shop sales fell as Budget uncertainty hit spending | |
| (32 minutes later) | |
| Retail sales fell last month as shoppers held back on spending ahead of the Budget, according to official figures. | Retail sales fell last month as shoppers held back on spending ahead of the Budget, according to official figures. |
| Sales volumes fell by 0.7% in October, the Office for National Statistics (ONS) said, with clothing stores having a "notably poor" month. | Sales volumes fell by 0.7% in October, the Office for National Statistics (ONS) said, with clothing stores having a "notably poor" month. |
| Speculation over which taxes might be increased ahead of last month's Budget has been blamed as a reason why households and businesses were more reluctant to make spending decisions. | |
| While the drop was bigger than expected last month, the ONS said that wider trends showed sales had been sturdy. | |
| Sales volumes were up 0.8% in the August to October period when compared with the previous three months. | |
| "When we look at the wider trend, retail sales are increasing across the three-month and annual periods, although they remain below pre-pandemic levels," said ONS senior statistician Hannah Finselbach. | |
| She said October's fall "was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget". | |
| Sales at clothing stores were down 3.1% in October, with separate surveys having suggested that milder weather last month might have led shoppers to delay buying warmer clothing. | |
| The retail sales figures are the latest in a run of disappointing data on the economy. | |
| Earlier this week, data showed higher-than-expected government borrowing, while the latest inflation figures showed prices rising faster than expected. | |
| And last week, figures indicated that the economy barely grew between July and September. | |
| Jacqui Baker, head of retail at RSM UK, said the figures were "concerning" given that most retailers are now heading into their busiest time of the year with Christmas only a few weeks away. | |
| "With half-term falling later this year and relatively mild weather, consumers have put off buying their winter coats and boots," she said. | |
| "This has made it difficult for retailers to shift stock, particularly as many have held off spending to take advantage of Black Friday deals." | |
| However, she added that with the Budget out of the way and interest rates coming down, this should "help with confidence and create a clear runway for Christmas spending". |