Retailers Face Challenging Economic Conditions

  • Consumer spending dropped by 0.7% in November
  • Second month of decline after a 0.2% drop in October
  • Expenditure struggled to maintain growth momentum in 2018 with falls in seven months out of 11
  • Face-to-face expenditure declined by 0.9% in November
  • E-commerce spending growth slowed from 2.6% to 0.4% year-on-year
  • Black Friday failed to boost consumer spending
  • Consumer confidence deteriorated due to Brexit uncertainty

UK consumer spending has experienced a second consecutive month of decline, dropping by 0.7% in November following a 0.2% drop in October according to Visa’s UK Consumer Spending Index. This comes after expenditure struggled to maintain growth momentum throughout 2018, with falls recorded in seven out of the 11 months so far. Face-to-face spending fell by 0.9% in November compared to the same month last year, while e-commerce spending growth slowed from a 2.6% increase in October to just 0.4%. Despite easing inflationary pressures and improvements in wages and earnings, consumer confidence has worsened due to ongoing Brexit uncertainty. As a result, retailers are likely to face challenging economic conditions in the short term.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in consumer spending and its causes, citing specific numbers and expert opinions. It also includes relevant context such as Brexit uncertainty affecting consumer confidence.
Noise Level: 3
Noise Justification: The article provides relevant information about a decline in consumer spending and offers insights from an expert on potential reasons behind it, but does not delve into long-term trends or provide actionable solutions.
Financial Relevance: Yes
Financial Markets Impacted: Retail and e-commerce companies
Financial Rating Justification: The article discusses a decline in consumer spending, which can impact retail and e-commerce businesses, as well as the overall economy. It also mentions Brexit uncertainty affecting consumer confidence.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk