Finance
UK consumers reined in their shopping in run-up to budget
Published by Global Banking & Finance Review®
Posted on December 19, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 19, 2025
2 min readLast updated: January 20, 2026
UK retail sales fell 0.1% in November, indicating economic slowdown. Black Friday discounts failed to boost sales, and retailers face tough conditions.
LONDON, Dec 19 (Reuters) - British retail sales fell by 0.1% in November from October, official figures showed on Friday, the latest in a string of data suggesting a slowdown in the broader economy ahead of finance minister Rachel Reeves' budget at the end of last month.
Economists polled by Reuters had expected sales volumes to rise by 0.4% in month-on-month terms.
"This year November's Black Friday discounts did not boost sales as much as in some recent years, meaning that once we adjust for usual seasonality, our headline figures fell a little on the month," Office for National Statistics senior statistician Hannah Finselbach said.
"Meanwhile, our separate household survey showed that although some people said they were planning to do more shopping this Black Friday than last, almost twice as many said they were planning to do less."
In October, sales fell by a revised 0.9%, a slightly less severe fall than a drop of 1.1% which was initially reported, the ONS said.
The November data was collected between November 2 and 29. Reeves announced her budget on November 26.
Earlier on Friday, Britain's longest-running consumer survey showed a pick-up in confidence in the days after Reeves announced 26 billion pounds ($34.8 billion) of tax increases but delayed the introduction of most of them.
Recent updates from UK retailers have highlighted tough market conditions ahead of Christmas, with clarity about the budget having done little to lift the mood.
Card and gift retailer Card Factory warned on its profits. Frasers, a sportswear and fashion retailer, said excess inventory was weighing on the industry. Electricals retailer Currys said spending and confidence was "muted" and it did not expect an improvement in 2026.
($1 = 0.7475 pounds)
(Reporting by William Schomberg; additional reporting by James Davey; editing by Sarah Young)
Consumer confidence is a measure of how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economic environment. High confidence typically leads to increased spending.
Black Friday is a shopping event that occurs the day after Thanksgiving in the United States, marking the beginning of the holiday shopping season. It is known for significant discounts and promotions.
A budget is a financial plan that outlines expected income and expenses over a specific period. It helps individuals and organizations manage their finances and allocate resources effectively.
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).
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