0941 GMT - The fall in U.K. retail sales was driven mainly by declining food sales, with volumes elsewhere rising by 1%, says Thomas Pugh, chief economist at RSM UK, in a note. "That is a good sign that all was not lost in the pre-budget chaos that has heavily weighed on sentiment." Meanwhile improving consumer confidence suggest an uptick in sentiment since the budget turned out better than feared, Pugh says. Looking to 2026, the outlook remains tough. A weakening labor market and stubborn inflation mean incomes are set for weak growth. Still, with household saving remaining elevated, there is space for consumers to spend more, Pugh says. (don.forbes@wsj.com)

(END) Dow Jones Newswires

December 19, 2025 04:42 ET (09:42 GMT)

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