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

  • prior +1.2%
  • prior +2.0%

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
Bank of England bank rate 31 October 2024 2