UK retailers report weakest sales since April, BRC survey shows

• According to industry data released on Tuesday, British retailers reported lacklustre sales in November, affected by the timing of the Black Friday sales, although it still pointed to weakening consumer confidence.
• Sales volumes dropped by 3.3% in the 12 months to November, the weakest reading since April when they fell 4.0%, and below an increase of 0.6% in the year to October, the British Retail Consortium said.
• Last month's decline reflected the fact that this year's data did not include Black Friday sales in late November, which will be reflected in the December numbers, though they were included in last year's comparison.
• Nonetheless, other factors also weighed on consumer spending in November.  Rising energy bills have also weakened consumer confidence and dented non-food spending, which fell 2.1% year-on-year in the three months to November, reflecting a decline in spending on winter clothing.
• Additionally, easing consumer confidence post-summer, and expectations that post-budget inflation and interest rates will stay higher in the coming months also contributed In line with expectations for higher-for-longer interest rates, the Bank of England (BoE) is expected to keep rates on hold at 4.75% later this month after cutting Bank Rates in August and November.

(Source: Reuters)