High streets and supermarkets witnessed another sales last month as shops were knocked by customers’ continued cost-of-living concerns and closures for the Queen’s state funeral. The Office for National Statistics (ONS) revealed that UK retail sales volumes declined by 1.4% last month.
It came after a 1.7% decline in August. However, it was notably worse than expected, after a consensus of economists predicted retail sales would only fall 0.5% for the month.
The ONS said food stores saw sales particularly drop, sliding by 1.8% in September, continuing a downward trend since summer last year when pandemic restrictions were eased on hospitality.
ONS director of economic statistics Darren Morgan said: “Retail sales continued to fall in September after a weak August, and consumers are now buying less than before the pandemic. Drops were seen across all main areas of retailing, with falling sales in food stores making the largest contribution.
“Retailers told us that the fall in September was partly because many stores were closed for the Queen’s funeral, but also because of continued price pressures leading consumers to be careful about spending.”
In other financial news, government borrowing swelled to £20 billion in September amid a surge in debt interest due to inflation, according to official figures. The Office for National Statistics said the reading for borrowing, excluding state-owned banks, was the second highest September on record, only surpassed during the height of the Covid-19 pandemic.
Borrowing in September outpaced the predictions of economists, who had forecast £17 billion for the month, and was significantly above the £14.8 billion estimated by the Office for Budget Responsibility back in March.
