UK Retail Sales Fall More Than Expected in September, Complicating BoE Outlook

• UK retail sales fell 0.4% MoM in September, exceeding forecasts.
• Core retail sales (ex-fuel) dropped 0.7% MoM.
• Weaker data could influence Bank of England policy outlook.

Retail sales in the United Kingdom decreased by 0.4% month-over-month (MoM) in September, according to data released by the Office for National Statistics (ONS). This decline was steeper than the 0.1% fall forecast by market analysts. Excluding automotive fuel, core retail sales also dropped by 0.7% MoM, surpassing the expected 0.1% decrease. These figures follow a revised 0.7% increase in August. On an annual basis, retail sales grew by 0.8%, missing the 1.0% forecast. Factors contributing to the weaker performance included reduced food purchases and unseasonably warm temperatures impacting demand for autumn apparel, potentially influencing the Bank of England’s (BoE) monetary policy outlook.