"The decline in sales volumes in October by 1.1%, following four consecutive months of growth, reflects a sector that is currently navigating a challenging environment, caught between signs of relatively high inflation and the grim reality of a cautious, financially stretched consumer base. The latest inflation figures this week,which dropped to 3.6% for October, is fuelling speculation that the Bank of England may reduce interest rates, potentially providing relief for those remortgaging soon and easing some business fixed costs like interest on existing loans."
"Reports suggest some banks are already offering lower rates, signalling this expectation. However, any cheer is severely limited by the fact that food and other essentials are still seeing elevated price increases ( food inflation rose to 4.9% in October), leaving many households feeling poorer despite the headline figure. The uncertainty surrounding what the Chancellor's Budget next week will mean for individuals is only further dampening consumer confidence and spending intentions."
Sales volumes fell 1.1% in October after four months of growth, indicating weakening consumer demand as households remain financially stretched. Headline inflation eased to 3.6% in October, prompting expectations that the Bank of England may cut interest rates and some banks are already offering lower rates, which could ease remortgaging pressures and business loan costs. Food and essentials inflation rose to 4.9%, reducing real household incomes. Uncertainty ahead of the Chancellor’s Budget is denting confidence. Christmas trading looks critical amid sluggish demand. Retailers face high fixed operating costs and sticky labour expenses; VAT and tourist shopping changes could materially help the sector.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]