LONDON, Nov. 15 (Xinhua) -- Brexit worries are dampening down growth in Britain's economy, new data on Thursday showed.
Growth in retail sales in October was half the level it was last year, according to figures from the official data body the Office for National Statistics (ONS).
Although the monthly figures are liable to be volatile, the rolling quarterly figures support a story of consumer wariness and an unwillingness to spend heavily while Brexit uncertainty remains in the air. Total retail sales rose over the three months to the end of October by 0.4 percent over the previous three-monthly period.
Thomas Pugh, British economist with Capital Economics, a London-based economics data firm, said: "With inflation continuing to fall back... and pay growth on the up, there should be scope for consumer spending growth to gather some momentum."
Brexit poses a challenge to economic growth, with a No Deal Brexit representing disruption and uncertainty and the likelihood of significant economic setbacks in the short term at least, with a negotiated Brexit or no Brexit at all signalling a period of stability and advanced growth.
"If a Brexit deal is struck and the UK enters into a transition period or indeed, if there is no Brexit at all, then we think that annual consumer spending growth will pick up from its current rate of 1.6 percent, to 2 percent in 2020," Pugh said.
British Prime Minister Theresa May revealed the details of an agreement on Brexit between her government and the European Union (EU), but Thursday saw two senior members of her Cabinet resign in protest over the deal plans and opposition to the deal.
Pugh said: "If there were a No Deal Brexit, which is becoming increasingly likely, we estimate a hit of between 1 percentage point and 3 percentage points to consumer spending growth in 2019."
