Britain's consumer-led recovery appeared to stall in October following a 0.7% fall in retail sales.(Shoe Store Fixture)
The Office for National Statistics (ONS) said the dip in sales ended a strong run of shopping data since the beginning of the year and meant the trend in the autumn was broadly flat.(Store Fixture)
Some analysts said the figures showed shoppers were gearing up for a spending spree in the weeks up to Christmas, which is traditionally the busiest period for retailers. A boost is also expected in November as the deadline nears for Christmas deliveries by online providers.
Richard Lowe, head of retail at Barclays, said: "The year on year increase revealed today is a positive result. Retailers are now firmly focused on delivering a bumper Christmas, which is expected to be 'very appy' as festive shoppers are predicted to spend more than ever using their mobile devices."(Shoe Store Fixture)
Consumer confidence is buoyant and increasingly matched by business optimism about the next year. The turnaround in the housing market(Supermarket Display), which has seen a marked increase in activity in recent months, is also credited with created a feel-good factor and spurring the purchase of furniture, carpets and other homewares.
On Thursday, the Bank of England governor, Mark Carney, said the recovery was secured and likely to pick up next year, though he warned that workers could expect falling real incomes to continue for another 18 months.
The prospect of a decline in household spending power could be behind the latest ONS retail sales figures(Shoe Store Fixture). Without a rise in wages the October figures show a more deep-seated problem of consumers running out of cash to spend. Consumers are also bracing themselves for double-digit rises in energy costs over the winter.
Wages rose by just 0.7% over the last year compared with a 2.2% rise in inflation. The ONS said prices on the high street ticked up 1.3%, excluding fuel, which dropped in price by 3.5% in the 12 months to October.(Supermarket Display)
