UK – British Retail Consortium (BRC) total sales in October, weakest growth since July | Forexlive

British Retail Consortium (BRC) total sales in October +0.6% y/y, weakest growth since July

• prior (September) +2.0%
• like-for-like sales +0.3% y/y (prior +1.7%)

Barclaycard UK October consumer spending +0.7% y/y, also the weakest growth since July

From the reports, in brief:

• Factors like budget uncertainty, delayed purchases until Black Friday, and a later half-term break impacted sales.
• The October 30 budget mostly targeted businesses for tax hikes, sparing many households from increased wage taxes, which may boost consumer confidence.
• A 10% increase in the household energy price cap added pressure on consumers.
• Essential spending dropped 2.2%, led by supermarkets, while non-essential spending rose 2.1%, driven by concert ticket sales.
• Despite earlier concerns, easing inflation and improved confidence suggest potential for spending growth.

Note, the Bank of England meets on Thursday

• is expected to reduce borrowing costs, eyeing falling inflationary pressures