In the UK, store sales fell unexpectedly in the run-up to Christmas due to a “very poor month” for food sold in supermarkets.
Sales fell 0.3% in December, according to official figures, well below expectations for a 0.4% rise.
Food sales fell to their lowest level in more than 10 years, but clothing and department stores saw an increase in trade.
The pound sterling slipped from $1.22 to $1.21 following these figures. These shock data will add to concerns about the health of the British economy.
Economists said the figures capped a “disappointing” end to 2024 for the retail sector, during a period when businesses are typically looking to make the most money.
Alex Kerr, UK economist at Capital Economics, said the worse-than-expected sales figures were “further evidence that the economy had very little momentum at the end of last year”.
But he added: “Even though the economy clearly struggled at the end of last year, we doubt this will last.”
Elliott Jordan-Doak, senior UK economist at Pantheon Macronomics, also suggested he expected “sales to improve in the new year”.
The hit to the retail sector last month was due to a drop in sales volumes at supermarkets, but specialist food stores, such as butchers and bakeries, as well as liquor stores and tobacco/vaping, have also struggled, according to Hannah Finselbach, senior statistician at the Office for National Statistics, which publishes the official figures.
In contrast, clothing and shoe stores saw sales rise 4.4% last month, rebounding from declines in November and October and reflecting increased spending ahead of Christmas.
