UK retail sales fell in September as shoppers reined in spending, the Office for National Statistics said on 23 October 2026, while a separate survey showed consumer confidence in October suffered its sharpest month-on-month fall since early in the Covid-19 pandemic. Retail sales volumes dropped by 0.4 percent in September from August, a bigger decline than the fall of 0.1 percent expected by most economists in a Reuters poll.
A mild start to autumn hurt clothing sales, as shoppers held off buying coats and knitwear, while higher fuel prices ate into household budgets. Supermarket sales fell in September after growth in July and August, the ONS said. Fuel sales volumes in September rose by 2.2 percent from August, as drivers filled up only partly in response to higher prices, yet the overall picture was one of caution at the tills.
Uk Retail Sales
Over the three months to September, total sales volumes rose by 0.7 percent, helped by the football World Cup and a summer heatwave, according to the ONS, which revised up its monthly figures for August and July. That longer view shows that the September dip followed a stronger summer, rather than a sudden collapse in spending, but analysts said the direction of travel in the autumn was less encouraging.
Consumer confidence had been at a two-year high, but the October survey showed a sharp fall. Analysts at Pantheon Macroeconomics said it seems likely that overall GDP growth will ease sharply from the 0.7 percent quarter-to-quarter pace it is on track for in the third quarter, and they look for quarterly growth of 0.2 percent in the fourth quarter. That forecast, if right, would mean a much slower end to the year for shops, restaurants and services.
For retailers, the figures arrive ahead of the busiest trading period of the year. Shops will be hoping that Christmas spending, promotions and colder weather bring clothing sales back, while households will be watching prices, pay and energy bills before deciding how much to spend. The ONS will publish the next retail sales figures in November, giving a clearer view of whether the September fall was a one-month pause or the start of a longer slowdown.
Source: Reuters via Riyadh Daily
