LONDON: British retail sales flattened in November from activity in October, the Office for National Statistics said yesterday, stoking worries about shrinking economic growth in the fourth quarter, analysts said.
Market expectations had been for a gain of 0.3 percent, according to analysts polled by Dow Jones Newswires. It comes after a much-worse-than-expected drop in October when retail sales volumes fell 0.8 percent month-on-month.
"Retail data released this morning was disappointing and gives further indication that the UK economy will contract in the final quarter of 2012," said CurrenciesDirect analyst Phil McHugh.
He added: "Brits are really feeling the pinch this holiday season. The cost of living is increasing across the board, leaving many consumers with less disposable income this Christmas."
Sales in November meanwhile rose 0.9 percent compared with the same period a year earlier, the ONS added. That dashed forecasts for a larger rise of 1.4 percent.
British Retail Consortium Director-General Helen Dickinson said that the figures suggested that many shoppers had left their Christmas shopping until December.
"With Christmas (Day) falling on a Tuesday this year, this weekend will be the critical one — I'm expecting a last-minute rush but overall in sales terms it will be neither a bumper Christmas nor a disaster," she added.
Recent data showed Britain had escaped from its double-dip recession in the third quarter of 2012, with gross domestic product (GDP) growing 1.0 percent.
However this was due to one-off factors such as the London Olympics and rebounding activity after public holidays in the second quarter of the year.
The outlook darkened earlier this month after the government forecast that the economy was heading for a 0.1 percent contraction in 2012 and would grow by less than expected in coming years.
The ONS will publish its third and final estimate of British third quarter gross domestic product today.
British retail sales flatten in November
