"UK Retail Slump Raises Recession Risk Amidst Global Market Highs"

UK retail sales dropped by 3.2% in December, signaling a possible recession in the second half of 2023. The decline was larger than expected, with non-food items and food store sales both affected. Economists suggest that higher interest rates may lead to a further decline in consumer spending in the first quarter, but anticipate a recovery in the second half of the year due to expected interest rate cuts and a fall in inflation. Online sales showed more resilience, but poor December weather and Black Friday events likely contributed to the decline.