UK retail sales post surprise fall as Britons feel the pinch

Figures are the latest indication that the UK economy is beginning to feel the effects of 14 consecutive rate hikes from the Bank of England

Economists were expecting a rise of 0.4% for October. Instead, sales fell to their lowest since February 2021 when Covid restrictions were in place, with retailers citing the cost-of-living crisis and bad weather for the poor performance.

UK retail sales fell unexpectedly in October, adding to the impression that a string of interest-rate hikes designed to beat down inflation is beginning to stymie economic activity.

The volume of goods sold online and in-store dropped 0.3%, the Office for National Statistics said Friday. That follows a downwardly revised 1.1% decline in September, when unusually warm weather held back spending on clothing.