In October, UK consumer spending faced hurdles, marked by a mere 2.6% YoY growth in card spending, the smallest increase since September 2022, and a modest 2% rise in non-essential item spending. Unseasonably warm weather delayed seasonal clothing purchases, contributing to the fourth consecutive monthly decline in clothing retail (down 3%). Moreover, 47% of consumers planned to cut discretionary spending due to rising energy costs.
On another front, the British Retail Consortium-KPMG Retail Sales Monitor revealed a 2.5% growth in total retail sales for the first four weeks of October, below the three-month average of 3.1%. Non-food sales dropped 1% over three months and declined in October. The late onset of colder weather, however, boosted fashion sales, particularly for outdoor wear. The report anticipates a highly competitive Black Friday period, fueled by delayed Christmas spending and heightened cost-of-living concerns.