UK retail sales in October 2023 fell to the lowest level since widespread lockdown restrictions in early 2021, official figures show.
The volume of products sold last month fell by an estimated 0.3%, following a drop of 1.1% in September, the Office for National Statistics (ONS) said.
Economists had forecast that retail sales would grow in October.
Lower sales of fuel and food were behind the decrease.
“After rebounding in September, fuel sales dipped with increasing prices discouraging customers, while food sales also dropped as consumers prioritised essential goods,” said Heather Bovill, deputy director for Surveys and Economic Indicators at the ONS.
“However, it was a better month for online retailers, the only main sector to report growth in October.”
Consumer confidence is weakening due to higher mortgage and rental costs, said Helen Dickinson, chief executive of the British Retail Consortium.
“More expensive purchases, such as laptops and electrical appliances, continued to not perform well and Christmas spend took off to a slower start as households held out for Black Friday bargains. Meanwhile, cosmetics and toiletries had another strong month, due to the ‘Lipstick Effect’ — where the high cost of living meant people spent more on smaller indulgences.”
Across the three months to October, retail sales volumes declined by 1.1% when compared with the previous three months.
Last week, the ONS reported that UK gross domestic product (GDP) flatlined between July and September 2023 compared with the previous three months.
