The
Confederation of British Industry (CBI) announced on Monday its latest survey
of retailers found the retail sales volume balance worsened to -43 in the
year to July from -24 in June. This marked the second consecutive month in which annual
sales fell and represented the lowest reading in three months.
Economists
had predicted the reading to increase to -20 in December.
The report also
showed that sales volumes were seen to decrease at a slower rate next month
(-32).
Commenting on
the latest survey, Martin Sartorius, principal economist at the CBI, noted that July became
a disappointing month for the distribution sector, with retailers feeling the
sting from a harsh mix of unfavourable weather conditions and ongoing market
uncertainty. “While the downturn in sales volumes is set to continue next
month, some firms expressed hope for an improvement in market conditions
post-general election,” he added. “The sector will now look for the new
government to deliver on its bold reform agenda outlined in the King's Speech
to supercharge growth to effectively aid households' finances and offer market
stability.”