UK retail sales dip 0.3 in October
Economists had forecast a 0.3 rise
Data underlines doubtful UK economic outlook
Retail sales volumes now back at 2018 levels

LONDON, Nov 17 Reuters British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home, official data showed on Friday, in a new warning sign for the economy.

Retail sales volumes dropped 0.3 monthonmonth, following a revised 1.1 decline in September that was worse than first estimated, the Office for National Statistics ONS said.

Economists polled by Reuters had forecast that sales volumes would rise by 0.3 on the month in October.

Overall the figures fitted with the darkening outlook for Britain39;s economy, with economic growth stagnant and strong price pressures now fading, albeit slowly.

Investors think these factors will force the Bank of England to lower interest rates next year.

Retailers suggested that cost of living, reduced footfall and the wet weather in the second half of the month contributed to the fall, the ONS said.

Excluding petrol, sales volumes fell 0.1 fall on the month. The figures also showed a downward revision for sales during the third quarter.

The impact of higher interest rates is building, said Martin Beck, chief economic adviser to the EY ITEM Club consultancy.

But retailers aren39;t out of supports. In the shortterm, October39;s drag from weaker fuel sales may reverse as recent falls in oil prices feed through to lower pump prices, Beck…