Black Friday sales do not appear to have provided much cheer for retailers amid continued consumer caution, according to official figures.

The Office for National Statistics (ONS) reported a 0.1% decline in sales volumes during November, compared to the previous month, when the data is adjusted for seasonal effects due to the pre-Christmas shopping bonanza falling in December last year.

Economists polled by the Reuters news agency had expected growth of 0.4%. The dip was worse when the effects of fuel sales were excluded.

Rolling three-month data showed positive sales volumes were only propped up by strength in September.

Money latest: The graduates who may want to pay off their student loan early

ONS senior statistician Hannah Finselbach said: “Retail continued to grow in the three months to November, helped by a strong performance from clothing and tech shops.

“This year November’s Black Friday discounts did not boost sales as much as in some recent years, meaning that once we adjust for usual seasonality, our headline figures fell a little on the month.

“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.”

Share

How to shop without getting ripped off

The data was released against a backdrop of widespread consumer and business caution in the run-up to the budget on 26 November – held just two days before Black Friday – although promotional activity was already well underway before Rachel Reeves’s speech.

That period was dominated by on-off signals over income tax hikes and black holes in the public finances, but the budget itself largely backdated many of the most painful measures towards the end of the parliament.

While the ONS data does little to boost retailers’ expectations for the Christmas season, there was a crumb of comfort to take from a closely-watched survey released just beforehand.

GfK’s consumer confidence index nudged up to its joint-highest level this year – though it remained deep in negative territory.

Share

Why isn’t Britain working?

The biggest upwards contribution came from a willingness to make major purchases, despite perceptions for personal finances weighing amid continuing cost-of-living pressures in the economy.

Neil Bellamy, GfK’s consumer insights director, said: “Consumers resemble a family on a festive winter hike, crossing a boggy field – plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off.”

We have had better economic news since the survey was completed.

Share

Has the Bank of England really vanquished inflation?

It was revealed this week that a much larger decline in the rate of inflation, to 3.2% from 3.6%, had allowed the Bank of England to cut interest rates to 3.75%.

It promises a boost to spending power as borrowing costs come down further, with wage growth still rising above that pace for price growth.

It is now hoped that the end of the budget circus will spark some life into the economy following two consecutive monthly contractions for output and a surge in the unemployment rate.

Much of the increase has been attributed to the retail and hospitality sectors reacting to sharp rises in employment costs under the Labour government.

Consumer spending accounts for around 60% of the UK economy.

Richard Carter, head of fixed interest research at Quilter Cheviot, said of the outlook: “Markets do not believe growth is coming to the UK anytime soon.

“Indeed, the UK is likely to slip into recession if the latest GDP figures are anything to go by, and there is little sign of positive momentum being generated.”

WH Smith is being investigated by the City watchdog after the company revealed accounting failures in its US operations.

The Financial Conduct Authority (FCA) said: “The investigation concerns potential breaches of UK Listing Principles and Rules and Disclosure and Transparency Rules in relation to the matters announced by WH Smith PLC on 19 November 2025.”

On that day WH Smith revealed that Carl Cowling, its chief executive of six years who had presided over the sale of the company’s UK high street business earlier in the year, had resigned after an independent review into an overstatement of earnings.

Money latest: The graduates who may want to pay off their student loan early

Experts from Deloitte found WH Smith’s North America division – its key area for growth – had been recognising supplier income incorrectly.

Profit forecasts were revised sharply lower as a result – its second such move during a year that has seen shares tumble by more than 40%.

The company said on Friday that it expected profitability next year to be static on 2025 financial year levels – reported at £108m – as it reviews some of its North American businesses in the wake of the accounting problems.

Its annual results were delayed twice as it got to grips with the issues.

WH Smith plans to recover overpaid bonuses from its former senior executives following previous profit restatements.

The company’s North American review includes its InMotion business, which sells electronic and digital accessories primarily in airports.

Interim boss Andrew Harrison told investors: “The Board and I are acutely aware that we have much to do to rebuild confidence in WH Smith and deliver stronger returns as we move forward.

The stock was a further 6% down at the market open but that decline later petered out.

The Bank of England has cut interest rates from 4% to 3.75%, its sixth cut since last summer.

The decision follows a bigger-than-expected fall in the consumer price index rate of inflation in data released this week. While inflation is still above the Bank‘s 2% target, the fall to 3.2% helped swing today’s decision, with five of the Bank’s nine-member monetary policy committee (MPC) voting for a cut.

The governor, Andrew Bailey, who had voted to leave rates on hold in November pending more data on inflation, shifted his vote this time around.

Money latest: What interest rate decision means for you

“We’ve passed the recent peak in inflation and it has continued to fall,” he said, “so we have cut interest rates for the sixth time, to 3.75 per cent, today. We still think rates are on a gradual path downward. But with every cut we make, how much further we go becomes a closer call.”

The decision will mean those with floating rate mortgages should immediately see a reduction in their monthly repayments – and some lenders are now reducing fixed-rate deals to 3.5% or below.

The Bank also gave its first full assessment of the economic impact of last month’s budget. It said the budget, which included measures to reduce energy bills and freeze fuel duty, should help push inflation half a percentage point lower next year.

Share

Better news on cost of living

That would mean CPI inflation would drop to close to the Bank’s 2% target as soon as the second quarter of 2026, nearly a year earlier than it originally expected.

However, the Bank also warned that growth remained weak. It said it expected gross domestic product to flatline in the fourth quarter of the year.

Share

UK economy shrinks again – was budget build-up partly to blame?

Since the decision was a narrow one, with four members of the MPC voting against the cut, some investors might judge that the Bank remains finely balanced on future decisions. Right now investors expect another cut by the end of next spring and, possibly, another one thereafter.

But whether rates eventually settle at 3.5% or 3.25% – or even lower – remains a matter of debate.