From Morningstar:

UK retail sales in December 2023 were much lower than expected, with volumes dropping 2.4% year-on-year and falling below November’s rise at 0.2%. The market forecast was an increase of 1.1%, according to the Office for National Statistics.

Michael Field, European Market Strategist, stated that retail sales have fallen by 2.4% in 2023, indicating that the UK economy is struggling. Non-food sales were down almost 4% in December, signaling that consumers are cutting back on non-essential items.

In December, retail sales fell 3.2% from November and came in well below market consensus. The previous month saw a 1.4% rise in retail sales from October, which was revised from 1.3%. Excluding fuel, retail sales fell 2.1% annually in December after rising 0.5% in November.

ONS data revealed a small increase in inflation, dashing hopes of an early interest rate cut by the Bank of England. This is due to wage growth easing off and household mortgage rates still high, putting pressure on household incomes and causing even more pain for retailers in 2024.



Read more: UK Retail Sales Drop Sharply in December