FX.co ★ UK Retail Sales Growth Hits 4-Month High

UK retail sales rose by 1.1% year-on-year on a like-for-like basis in October 2026, just below the 1.2% forecast but slightly above September’s 1.0% increase, marking the strongest rise since June. Total retail sales were up 1.5%, an acceleration from 1.3% in September. Food sales grew by 3.2%, while non-food sales were flat, as consumers remained cautious ahead of the festive shopping period and Black Friday promotions.

Barclays’ measure of consumer card spending increased by 2.3% year-on-year, up from 2.0% in September and the fastest pace since July 2025. Essential spending climbed 3.1%, driven by a 22.7% surge in fuel expenditure, while non-essential spending rose 1.9%. Entertainment spending had its strongest month since September 2024, boosted by Glastonbury ticket sales. However, consumer confidence was at its lowest level of optimism about the UK economy since April, weighed down by rising household costs and uncertainty ahead of the upcoming budget.