Retail sales drop unexpectedly in October amid Budget hit to consumer confidence

Retail sales fell unexpectedly last month for the first time since May in the latest sign of consumer caution ahead of the Budget.

Official figures showed retail sales by volume fell 1.1% during October, following an upwardly revised increase of 0.7% in September.

Most economists had forecast for retail sales to remain unchanged month-on-month in October.

In the three months to October, the Office for National Statistics (ONS) said retail sales lifted 1.1% compared with the previous three months.

The figures follow a raft of retailers reporting that shopper spending has pulled back due to uncertainty over the upcoming Budget, including high street stalwart Marks & Spencer.

And figures out separately from GfK on Friday showed consumer confidence has fallen across all measures this month as it said the public is “bracing for difficult news” in next week’s Budget.

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— Office for National Statistics (ONS) (@ONS) November 21, 2025

The ONS said that retailers were also seeing some spending held back in October ahead of this month’s Black Friday promotions.