UK retail sales growth slows in November on higher fuel prices

UK retail sales growth slowed in November from the previous month’s 14-year high as an increase in fuel prices offset strong Black Friday sales.

Retail sales, including fuel, rose 5.9% compared to the same month a year ago, slowing from October’s 7.2% annualised rise, the Office for National Statistics said. The decline was in line with expectations.

On the month, retail sales climbed 0.2% compared with a 1.8% rise in October, beating forecasts for flat sales.

Excluding fuel, retail sales growth eased to 6.6% in November from 7.5% in October, although it was better than the 6.0% gain expected by analysts.

Month-on-month retail sales, excluding fuel, edged up 0.5% in November following a 1.9% gain in October. Economists had expected flat sales.

Sales at department stores and household goods stores bolstered the figures while clothing sales dropped.

“Despite the fairly subdued monthly growth in UK retail sales in November, the sector should still provide strong support to GDP growth in the fourth quarter,” said Scott Bowman, UK economist at Capital Economics.

"The 0.2% monthly rise in sales volumes was in line with the consensus expectation and was boosted by strong Black Friday sales. This was partly offset by weak fuel sales as fuel prices rose by the most on an annual basis since 2011.Indeed, fuel price rises meant that retail sales inflation was positive for the first time since June 2014."