Today's macro report paints a worrying picture16 Dec 2022 10:55
"Figures out earlier from the Office for National Statistics showed that retail sales unexpectedly fell last month.
Sales declined by 0.4% in November following a 0.9% increase in October, missing expectations for a 0.3% jump. Sales in October had bounced back from the impact of the additional Bank Holiday in September for the Queen's funeral.
Excluding fuel, retail sales were down 0.3% on the month in November.
ONS director of economic statistics Darren Morgan said that sales during Black Friday had failed "to provide their usual lift in this sector".
"However, department stores and households good shops did report increased sales, with these retailers telling us a longer period of Black Friday discounting helped boost sales," he said.
"Food and alcohol sales were also up, with consumers stocking up early to try to spread the cost of Christmas festivities."
The figures showed that online sales fell 2.8% in November, continuing a downward trend seen since early 2021, as the wider economy reopened and people were able to shop in stores again. Still, they are 18.2% higher than their pre-Covid February 2020 levels.
Separately, a survey showed that consumer confidence remains at historic lows as the poor economic climate continues to weigh heavily
The latest GfK consumer confidence index was -42, up two points on November but still only seven points off September's record low of -49.
Joe Staton, client strategy director at GfK, said: "December marks the eighth month in a row in which the index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago."
Within the overall score, the index for expectations for personal finances was unchanged on November, at -29, while the gauge for the outlook for the economy over the next 12 months pushed five points higher to -53.
However, Staton argued: "Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods.
"Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas. The outlook for our personal financial situation over the next 12 months - perhaps the key metric as we enter the new year - is stuck at -29."
Sign In
Follow the stocks
