LONDON (Reuters) – U.K. retail sales rebounded stronger than expected in October after shops closed in September for Queen Elizabeth’s funeral, but remain at a lower level than before the COVID-19 pandemic, soaring prices weighing on consumers’ purchasing power.
Data released by the Office for National Statistics (ONS) on Friday showed retail sales rose 0.6% month on month after falling 1.5% (revised figure) in September. Over one year, however, they fell by 6.1%.
Economists polled by Reuters had forecast a 0.3% month-on-month rebound and a 6.5% year-on-year contraction after falling 6.8% (revised) year on year in September.
The ONS stressed retail volume sales remained 0.6% below their pre-pandemic level as Finance Minister Jeremy Hunt, who unveiled an austerity plan on Thursday, explained that the country was already in recession and that the economy is expected to contract by 1.4% next year.
“There is no doubt that the retail sector will face unprecedented challenges in 2023,” said Lisa Hooker, consumer specialist at PricewaterhouseCoopers (PwC).
The consumer price index rose 11.1% year on year in October, its highest level in 41 years, after 10.1% in September, according to data released by the ONS on Wednesday.
(Report William Schomberg and Andy Bruce; French version Claude Chendjou, edited by Blandine Hénault)
click here for restrictions
©2022 Reuters