Sales volumes dropped by 0.1% in November from October, as a boost from the Black Friday promotional offers failed to match the impact of previous years.
In October, sales fell by a revised 0.9%, a slightly less severe fall than a drop of 1.1% which was initially reported, the ONS said
“A second consecutive month of decline in retail sales will be a big disappointment for retailers, particularly with Black Friday and early Christmas shopping captured in these figures,” Oliver Vernon-Harcourt, head of retail at Deloitte, said.
Economists polled by Reuters had expected sales volumes to rise by 0.4% in month-on-month terms last month.
“This year November’s Black Friday discounts did not boost sales as much as in some recent years,” Office for National Statistics senior statistician Hannah Finselbach said.
“Meanwhile, our separate household survey showed that although some people said they were planning to do more shopping this Black Friday than last, almost twice as many said they were planning to do less.”
In the three months to November, sales rose but the 0.6% rise was the weakest reading since the three months to August.
Supermarket sales volumes fell for a fourth consecutive month and jewellers reported lower demand for gold items as prices of the precious metal stabilised after their surge.
The November data was collected between Nov 2 and 29. Reeves announced her budget on Nov 26.
Previously released figures from the ONS have shown a drop in economic output and rise in the unemployment rate to its highest since 2021 in the three months to October.
Paul Dales, chief UK economist at Capital Economics, said Friday’s weak reading of retail sales supported his view that soft consumer spending would contribute to a slowing of economic growth to about 1.0% in 2026 from around 1.4% this year.
Earlier on Friday, Britain’s longest-running consumer survey showed only a slight pick-up in confidence in the days after Reeves announced £26 billion of tax increases but delayed the introduction of most of them.
Borrowing data published separately by the ONS on Friday underscored the scale of Reeves’ challenge to repair the public finances.
Recent updates from UK retailers have highlighted tough market conditions ahead of Christmas, with clarity about the budget having done little to lift the mood.
Card and gift retailer Card Factory warned on its profits. Frasers, a sportswear and fashion retailer, said excess inventory was weighing on the industry. Electricals retailer Currys said spending and confidence was “muted” and it did not expect an improvement in 2026.