UK retail sales weaken as consumers hold back

Bloomberg

UK retail sales fell the most in seven months in October, indicating continued caution among consumers just before the crucial Christmas shopping season.
The British Retail Consortium said sales fell 1 percent on a like-for-like basis and were up just 0.2 percent in total terms. In a separate report, Barclaycard said annual growth in household spending slowed to 2.4 percent in October from 3 percent in September, the weakest in more than a year.
Faster inflation and sluggish wage growth has meant falling real incomes for UK workers, allowing them to
buy less in Britain’s high streets and malls. Retail stocks have underperformed the broader market this year, and Next Plc Chief Executive Officer Simon Wolfson said that consumer behaviour is “subdued.”
Bank of England Governor Mark Carney said that while household finances have been “difficult” this year, “the worst of that real-income squeeze is ending.” In addition to expecting inflation to peak this month, he also forecasts a pickup in wage growth.