IEA response to today's UK retail sales figures

Responding, Dr Valentin Boboc, Chief Economist, Institute of Economic Affairs, said:

Sudden falls in retail sales can reflect a particular event or temporary shock. For example, September's warm weather appears to have discouraged autumn clothing purchases.

The accompanying deterioration in consumer confidence is more concerning. It suggests that persistent living-cost pressures and uncertainty ahead of the Budget risk translating into weaker spending in the months ahead.

The Chancellor should use the budget as an opportunity to bring more confidence for both consumers and businesses.