Recent economic data shows a clear slowdown in British retail. The latest industry figures reveal that consumer spending cautious trends are emerging. Total sales growth cooled significantly throughout the month of September. This hesitation comes directly before the chancellor’s autumn budget announcement. Households are increasingly worried about potential tax increases. Inflation also continues to pressure family finances significantly.
Therefore, the British Retail Consortium reported a notable sales deceleration. Total retail sales increased by just two point three percent annually. This figure is much lower than the previous month’s growth rate. It also falls below the current official inflation rate. This means the real volume of goods sold actually declined. The chief executive of the BRC confirmed the budget’s impact. She said the looming fiscal event is affecting Christmas spending plans.
Separate data from Barclays bank strongly supports this trend. Their figures show consumer card spending fell last month. There was a zero point seven percent annual drop in September. The bank conducted a survey of two thousand individuals. It found nearly half are changing their financial behavior now. One in three people are actively building their savings. This demonstrates how consumer spending cautious attitudes are spreading.
Food sales showed stronger growth due to higher prices. However, non-food spending increased by only zero point seven percent. Milder autumn weather reduced demand for new winter clothing. The launch of new Apple products helped electrical goods sales. An analyst from KPMG described non-food growth as meagre. She confirmed that consumer spending cautious patterns are persistent.
Business leaders are urgently warning the government about taxes. The British Chambers of Commerce wants no new business levies. Their director general called the upcoming budget make-or-break. She stated that many companies feel completely drained already. Higher business taxes typically lead to increased consumer prices. This would worsen the financial pressure on households further.
Barclays noted some positive signals about consumer confidence. Belief in living within means reached a four year high. Personal finance sentiment has remained surprisingly resilient. Despite this, the overall outlook remains quite guarded. The bank’s head of retail observed consistent careful spending. Shoppers are actively seeking areas where they can cut back. The nation is waiting anxiously for the budget details. Everyone wonders how tax decisions will impact their wallets.
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