UK Retail Sales Growth Slows Amid Economic Uncertainty

UK retail sales growth decelerated to 2.3% year-over-year in September, down from August's 3.1% increase, as inflationary pressures and tax uncertainty weighed on consumer spending. The slowdown was particularly pronounced in non-food categories like clothing and household goods, which saw a 0.7% decline compared to 1.8% growth the previous month.

Nearly one-quarter of consumers are deferring purchases ahead of Chancellor Rachel Reeves' November budget announcement, according to industry research. The new administration faces the dual challenge of stimulating economic growth while managing substantial public debt burdens.

Unseasonably warm weather further dampened demand for autumn apparel, with retailers reporting delayed purchases of seasonal items. Food sales showed modest gains, though KPMG analysis suggests this reflects inflationary pricing rather than increased volume, as consumers increasingly trade down to value brands.