British recession looms as Christmas retail sales slide

Policymakers at the Bank of England are closely watching the data to gauge when they can bring UK interest rates down from their highest level in 16 years.

British retail sales fell at their fastest pace since pandemic lockdowns three years ago, adding to the risk the UK economy slid into a shallow recession to end 2023.

The volume of goods sold fell 3.2% in December, the UK Office for National Statistics said, as households did their shopping earlier in the season and bought less sports equipment, games, watches and jewellery in the days immediately before Christmas. That was the worst reading since January 2021.