The
Confederation of British Industry (CBI) reported on Tuesday its latest survey
of retailers found that the retail sales volume balance improved to -27 in the
year to August from -43 in July, pointing to the third consecutive decline in
the sales volumes of the UK’s retailers, the pace of which, however, was slower
than in previous month.
Economists
had forecast the reading to rise to -11 in August.
The report also
revealed that sales volumes were seen to drop at a softer rate next month (-17).
In other survey
results, selling price inflation in the year to August quickened (+30 compared to
+20 in May) but remained below its long-run average (+41). Selling price
inflation was anticipated to ease sharply next month (+15).
Meanwhile,
employment in the retail sector decreased for the eighth successive quarterly
survey (-25 compared to -26 in May) and was seen to reduce next month at a
broadly similar rate (-28).
Elsewhere, retailers
indicated intention to cut investment in the next 12 months to a larger extent
than in May (-35 compared to -25 in May).
Commenting on
the latest survey, Martin Sartorius, principal economist at the CBI, noted that retailers
reported heightened caution regarding their investment and hiring plans, which
seemed to reflect worries about persistently weak demand conditions. “Although
households seem to still be feeling the pinch from the cost-of-living crisis,
firms should gradually begin to see some tailwinds from consumers’ rising real
incomes,” he added. “