British Retail Sales Plunge Amid Economic Uncertainty

British retail sales saw a significant decline in October, surpassing expectations, and adding to concerns about economic momentum under Prime Minister Keir Starmer's new government. Factors such as consumer caution before the budget announcement and unusual weather patterns contributed to the downturn, according to the Office for National Statistics.

British retail sales dropped sharply in October, significantly more than predictions, indicating waning economic momentum as Prime Minister Keir Starmer unveiled his new government's first budget.

Economists polled by Reuters had anticipated a monthly sales volume decrease of 0.3%, but the actual decline was the most severe since June, with an unexpected drop from September. Additionally, a preliminary September sales increase was revised down, highlighting the fragile retail environment.

The Office for National Statistics cited consumer caution and atypical weather, impacting clothing sales, as reasons for the downturn. Sterling briefly dipped against the U.S. dollar following the data release, though it later stabilized.

(With inputs from agencies.)