UK consumers reined in their shopping in run-up to budget (updated)

Frasers

19/12/2025 07:22

UK retail sales drop by 0.1% in November

Reuters poll had pointed to a rise of 0.4%

Supermarket sales fall for 4th month

Demand for gold dips, jewellers say

Data adds to signs of slowdown ahead of budget

Adds economists in paragraphs 4 and 12, details 9

By William Schomberg

LONDON, Dec 19 (Reuters) - British retail sales fell last month, official figures showed on Friday, the latest in a string of data suggesting a slowdown in the broader economy ahead of finance minister Rachel Reeves' budget at the end of last month.

Sales volumes dropped by 0.1% in November from October, as a boost from the Black Friday promotional offers failed to match the impact of previous years.

In October, sales fell by a revised 0.9%, a slightly less severe fall than a drop of 1.1% which was initially reported, the ONS said

"A second consecutive month of decline in retail sales will be a big disappointment for retailers, particularly with Black Friday and early Christmas shopping captured in these figures," Oliver Vernon-Harcourt, head of retail at Deloitte, said.

Economists polled by Reuters had expected sales volumes to rise by 0.4% in month-on-month terms last month.

"This year November's Black Friday discounts did not boost sales as much as in some recent years," Office for National Statistics senior statistician Hannah Finselbach said.

"Meanwhile, our separate household survey showed that although some people said they were planning to do more shopping this Black Friday than last, almost twice as many said they were planning to do less."

In the three months to November, sales rose but the 0.6% rise was the weakest reading since the three months to August.

Supermarket sales volumes fell for a fourth consecutive month and jewellers reported lower demand for gold items as prices of the precious metal stabilised after their surge.

The November data was collected between November 2 and 29. Reeves announced her budget on November 26.

Previously released figures from the ONS have shown a drop in economic output and rise in the unemployment rate to its highest since 2021 in the three months to October.

Paul Dales, chief UK economist at Capital Economics, said Friday's weak reading of retail sales supported his view that soft consumer spending would contribute to a slowing of economic growth to about 1.0% in 2026 from around 1.4% this year.

Earlier on Friday, Britain's longest-running consumer survey showed only a slight pick-up in confidence in the days after Reeves announced 26 billion pounds ($34.8 billion) of tax increases but delayed the introduction of most of them.

Borrowing data published separately by the ONS on Friday underscored the scale of Reeves' challenge to repair the public finances.

Recent updates from UK retailers have highlighted tough market conditions ahead of Christmas, with clarity about the budget having done little to lift the mood.

Card and gift retailer Card Factory CARDC.L warned on its profits. Frasers FRAS.L, a sportswear and fashion retailer, said excess inventory was weighing on the industry. Electricals retailer Currys CURY.L said spending and confidence was "muted" and it did not expect an improvement in 2026.

($1 = 0.7475 pounds)

 (Reporting by William Schomberg; additional reporting by James Davey; editing by Sarah Young and Jon Boyle)

 ((william.schomberg@thomsonreuters.com; +44 207 542 7778; Reuters Messaging: william.schomberg.reuters.com@reuters.net))