British retailers saw sales fall last month on the back of uncertainty before the autumn Budget, according to official figures.
Clothing stores had a particularly weak month, with industry data suggesting mild October weather may have caused shoppers to hold off buying more warm winter clothing.
Retail sales volumes, which measure the quantity bought, decreased by 0.7% in October, the Office for National Statistics (ONS) said.
It comes after retailers witnessed 0.1% growth in September. This was revised down from a previous estimate of 0.3%.
The fall in October was heavier than expected, with economists having predicted a 0.3% decline.
ONS senior statistician Hannah Finselbach said: “Retail sales fell back in October following three months of growth.
“The fall was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget.
“However, when we look at the wider trend, retail sales are increasing across the three month and annual periods, although they remain below pre-pandemic levels.”
The figures showed that sales volumes across all non-food stores fell by 1.4%, swinging back lower after 2.3% growth in the previous month.
Retailers suggested that “low consumer confidence and uncertainty around the Budget announcement” affected their sales.
Clothing shops were particularly weak in October, dropping by 3.1% for the month.
It came after the British Retail Consortium suggested quite mild weather caused shoppers to delay typical winter items, such as coats and jackets, compared with previous years.
The data showed that food stores saw sales volumes dip by 0.6% for the month.
Jacqui Baker, head of retail at RSM UK, said: “It was a concerning start to the golden quarter which won’t come as good news for retailers given it’s supposed to be the start of their busiest period.
“With half-term falling later this year and relatively mild weather, consumers have put off buying their winter coats and boots.
“This has made it difficult for retailers to shift stock, particularly as many have held off spending to take advantage of Black Friday deals.”
It also comes amid warnings from retailers that they will face a £7 billion jump in their costs because of a raft of policy measures from the Chancellor’s Budget.
Retailers including Tesco, Sainsbury’s and Marks & Spencer signed a letter to Rachel Reeves warning that job losses were “inevitable” and prices would increase, because of a number of policy measures including a rise in business national insurance payments.
