Economy
Economy explores the wider economic forces influencing the UK retail industry. This section covers inflation, consumer spending, interest rates, labour market conditions, and policy developments affecting retail performance and profitability. Retail Sectorโs Economy coverage provides expert analysis, data-driven insight, and commentary to help retail leaders, financial planners, and operational managers understand how macroeconomic trends are shaping demand, costs, and investment decisions across the sector.
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Dec- 2025 -19 December
UK consumer confidence edges up but remains flat year-on-year
UK consumer confidence rose modestly in December, but remained unchanged from a year earlier, underlining continued pressure on household sentiment despite easing inflation. GfKโs long-running Consumer Confidence Index increased by two points to -17 in December, with all five underlying measures showing month-on-month improvements. The index has been published jointly…
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19 December
UK retail sales dip in November amid weaker Black Friday boost
UK retail sales volumes fell slightly in November, as a weaker-than-usual Black Friday failed to offset falls in supermarkets and online jewellery sales, official figures show.Retail sales volumes dropped by 0.1% in November, following a revised fall of 0.9% in October, according to the Office for National Statistics (ONS). That…
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18 December
BoE cuts interest rates to 3.75%
The Bank of England (BoE) has voted to cut interest rates from 4% to 3.75%, the lowest the level has been since February 2023, and marking the fourth rate cut made this year.ย The bankโs Monetary Policy Committee (MPC) voted by a majority of five to four to reduce the…
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18 December
Consumer confidence remains subdued despite slight December uptick
Consumer confidence remained weak in December despite a modest improvement in expectations about the wider economy, according to new figures from the British Retail Consortium (BRC). Data from the BRC-Opinium survey showed expectations for the state of the economy over the next three months rose to -38 in December, from…
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17 December
Inflation slows more than expected to 3.2% as food prices ease
UK inflation slowed more than expected to 3.2% in November, marking the lowest level in eight months, as food, alcohol and clothing prices helped drive the rate down.The news comes a day ahead of the Bank of Englandโs expected decision on interest rates, which are expected to be cut to…
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12 December
UK festive spending set to rise to ยฃ24.6bn, PwC survey finds
UK consumers are expected to spend ยฃ24.6bn on presents and celebrations this Christmas, a 3.5% increase on last year, according to new research by PwC. PwCโs Festive Predictions Survey forecasts average spending of ยฃ461 per adult over the period, up from ยฃ449 in 2024, despite continued pressure on household finances…
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5 December
Black Friday delivers limited lift to retail sales in November
Black Friday provided only a modest boost to discretionary retail sales in November, with total like-for-like sales rising 3.4% against a weak comparison period in 2024, according to BDOโs latest High Street Sales Tracker. The increase followed a 5.8% fall a year earlier. The month, which included the peak promotional…
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2 December
Early Black Friday discounting slows shop price inflation to 0.6%
Shop price inflation fell to 0.6% in November, down from 1.0% in October, as retailers launched Black Friday discounting earlier than usual. Non-food prices declined by 0.6% year on year, compared with a fall of 0.4% in October. Food inflation eased to 3.0%, from 3.7% a month earlier. Fresh food…
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Nov- 2025 -28 November
Half of Britons say Budget leaves them worse off, YouGov finds
Britons view the 2025 Budget as unfair and unaffordable, with only a small minority believing the measures will leave the country or their own finances better off, according to new YouGov polling. Half of those polled say the measures will leave the country worse off, with 50% saying the same…
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27 November
Budget reaction: Retail split as business rates and import rules shift
The retail industry has labelled the Autumn Budget as a “mixed bag” for retail, offering relief for many shops, but bringing in new costs for others Chancellor Rachel Reeves delivered Labourโs first Autumn Statement, outlining permanent business rates reductions for 750,000 retail, hospitality and leisure businesses and confirming new customs…
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