British retail sales fell in November despite price reductions at many major stores. The Office for National Statistics says sales volume fell 0.4% compared to the previous month. Market expectations had been for a smaller drop of 0.2%.
Today's figures raise concerns about whether the Christmas season will also be disappointing for British retailers. The ONS said that sales of computers, jewellery, watches and carpets were slow.
Many retailers are counting on a strong December to help offset what has been a disappointing year. Consumers have been cutting back on spending because of fears that Britain faces another recession as the government tries to reduce the budget deficit with substantial spending cuts.
But sales jumped by 0.7% in November compared with the same month in 2010, the ONS added. Analysts had expected a 0.4% gain.
